Chevy Average Transaction Price Stable In February 20230
New Chevy vehicle average transaction prices (ATPs) remained basically stable in February 2023 at $47,196, registering a 0.4 percent decline year-over-year from February 2022’s $47,374 ATP.
The ATP for a new Chevy vehicle saw a zero percent change, rising only a statistically insignificant $12 month-over-month from January 2023 according to data reported by Kelley Blue Book and Cox Automotive.
Chevy ATP has been stable or trending slightly downward for several months. The Bow Tie’s average transaction price fell 1.5 percent in January after remaining stable in December 2022. This followed a larger 5.2 percent decline in November 2022.
New-vehicle average transaction price dropped industry-wide during February as automakers began offering bigger incentives, KBB points out. ATP would have fallen even faster if not for high-value luxury vehicle sales, which accounted for 19.5 percent of the total. This is up by almost half from the 13.2 percent market share of luxury vehicles during February 2018.
Turning to the overall performance of GM, including the sales from all four of its brands, Chevy, Buick, Cadillac and GMC, its ATP amounted to $51,165. This average transaction price is also stable year-over-year, showing a 0.6 percent gain from February 2022, while declining 1.4 percent relative to the previous month’s ATP in January 2023.
Setting the backdrop, ATP for the whole automotive industry jumped 5.3 percent compared to last year, while dropping 1.4 percent from last month. Sales volumes for February 2023 surged 9 percent in both month-over-month and year-over-year comparisons.
Cox Automotive‘s research manager Rebecca Rydzewski noted “luxury and non-luxury prices were down month over month,” but that ATPs are still being supported by “new models, richer product mix and limited discounting.” Incentives in the non-luxury sector, where Chevy sells many of its vehicles, are rising to counteract ebbing demand.
Notably, the gap between actual sales price and MSRP or sticker price has nearly shrunk to zero. ATP for the auto industry was $1,000 above suggested retail price 12 months ago, but the difference has now tightened to just $95.
High loan rates and an inflationary economy are contributing by holding down demand while supply increases as the microchip shortage finally tapers off. Car companies are offering affordable vehicles, including many compact and subcompact models, with growing incentives to encourage sales. Meanwhile, automakers are focusing on production of luxury models where these economic effects are less intense and higher ATPs are still to be had.
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