The average transaction price or ATP for new vehicles from GM’s Buick brand fell by 2.5 percent in May 2023 in a year-over-year comparison with May 2022 prices. From a monthly perspective, Buick ATP dropped 1.8 percent since April.
The data comes from a recent new-vehicle sales analysis prepared by Cox Automotive and Kelley Blue Book that looks at May 2023 ATP for both entire automakers like GM and individual brands like Buick.
The research shows that new Tri-Shield vehicles averaged a sticker price of $37,535 in May 2023, a 2.5 percent downward slump relative to Buick ATP of $38,503 in May 2022. With April ATP at $38,221, May’s ATP is 1.8 percent below last month’s.
ATP for new Buick vehicles has been decreasing for months. April saw a 2.2 percent decline year-over-year in the average new Buick transaction. The price fell even more compared to last year in March, registering a 4.2 percent drop.
Unlike Buick, ATP for The General’s other three brands – including Cadillac, Chevy, and GMC, – increased relative to last May. ATP gains stood at 1.2 percent for Cadillac, 2.1 percent for Chevrolet, and 7.4 percent for Big Red. Overall $51,958 ATP for GM rose 2.9 percent year-over-year, but dropped 0.2 percent month-over-month.
Cox reports the industry-wide new vehicle ATP in the U.S. increased 3 percent for May 2023 above last year’s prices. ATP climbed very slightly from April to May, registering a 0.5 percent gain.
Crucially, where ATP had been significantly higher than MSRP for most of the previous year, average purchase prices are now below the manufacturer’s suggested price for the fifth month in a row. May 2023 ATP was $410 lower than MSRP while May 2022 ATP was $637 higher.
Average transaction prices were lowered in May 2023 by dealers offering more significant incentives than they did during the previous year. While incentives fell short of the 7 percent of ATP offered in May 2021 and the 9.9 percent in May 2019, they still rose to 3.9 percent last month.
Average prices for non-luxury vehicles, a sector which includes Buick, rose 3.7 percent year-over-year in May 2023, showing the Tri-Shield brand is largely following wider market trends.
Dealer inventory of luxury vehicles accumulated as production and supply of new vehicles increased, while luxury ATP showed mixed results, with some vehicle types gaining and others losing. Non-luxury dealership inventory also climbed, though by a lesser amount.