New GMC vehicle average transaction prices surged to $64,085 per vehicle in January 2023, an 8.8 percent jump compared to the year-ago $58,925 ATP in January 2022, Kelley Blue Book and Cox Automotive data shows.
The KBB report also shows GMC new vehicle ATPs up about 0.4 percent month-over-month from December 2022’s $63,836 ATP. December’s GMC ATPs had also increased 1.8 percent compared to November and 3.7 percent relative to December 2021.
GMC was the only one of The General’s brands with positively growing ATP both monthly and yearly for the month. The overall ATP of GM vehicles fell 0.7 percent year-over-year to $51,842 per vehicle in January 2023 when Chevy, Buick, Cadillac and GMC price performance is combined. There was a 3.5 percent drop in GM average transaction price for new vehicles relative to the $53,714 ATP recorded in December 2022.
Zooming out, the overall U.S. automotive industry recorded a 5.9 percent increase in January 2023 new-vehicle ATPs compared to January 2022, achieving an average price of $49,388 per vehicle. ATPs fell 0.6 percent when measured against December 2022’s average prices.
KBB reports luxury and high-end models performed better than lower-end vehicles for the period. One significant cause for this pattern is that non-luxury vehicles reached all-time record ATPs during December 2022.
Moving into January, incentives increased from December lows, causing the unsustainably high ATPs to decrease for non-luxury brands. Inflation and high rates for car loans also put a dent in lower-end car sales, the report points out.
Overall sales saw luxury vehicle sales gain as a share of sales in January 2023, rising to 19.6 percent of the total and attaining a new record. Rebecca Rydzewski, Cox Automotive‘s research manager of economic and industry insights, observed that “Both luxury and non-luxury prices were down month over month, but the mix of luxury vehicle sales last month – at a record high near 20 percent – helped keep the overall average price elevated.”
Industry sales volumes rose year-over-year in January 2023, driven both by increasing fleet sales and growing supply of vehicles. Overall auto industry sales are down 6 percent compared to December 2022, however. The latest average transaction price for vehicles is still roughly $310 above sticker price but the difference is shrinking.