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GMC Average Transaction Price Up 7.4 Percent In May 2023

Recording the highest May 2023 price gains among GM’s four main brands, GMC saw the average transaction price (ATP) of its new vehicles soar 7.4 percent year-over-year compared to May 2022. At the same time, its ATP fell by 2 percent compared to April 2023.

The data on both GMC and GM ATP is part of monthly sales research recently published jointly by Cox Automotive and Kelley Blue Book.

Main entrance of a GMC and Buick dealership.

GMC new vehicle ATP was $62,066 in May 2023, 7.4 percent higher than the year-ago ATP of $57,816. However, ATP for May sales declined by 2 percent from the average transaction price of $63,357 reported for April of calendar year 2023.

Average new car prices for GMC have been significantly above 2022 monthly ATP for several months now. The brand’s ATP was up 9.2 percent year-over-year in March 2023, following 9 percent gains in February 2023 versus ATP in February 2022.

GMC registered the biggest ATP rise among The General’s main subsidiaries, but Cadillac and Chevy also saw new vehicle transaction prices rise, with increases of 1.2 percent and 2.1 percent respectively. Only Buick saw year-over-year declines, with ATP dropping 2.5 percent for May 2023. GM’s ATP rose 2.9 percent compared to May 2022 at $51,958, though this was 0.2 percent less than April 2023.

A row of GMC Sierra trucks at a GMC dealership.

The gains by GMC strongly outpaced ATP increases for the American auto sector as a whole, which saw ATP gains of 3 percent for May 2023 compared to May 2022 prices. The U.S. automotive sector’s month-over-month ATP increase was only 0.5 percent.

Following a long period of time during which ATP was hundreds or even thousands of dollars above MSRP, average new car dealership prices have fallen lower than MSRP for five consecutive months, including May 2023. Where overall automotive ATP exceeded MSRP by $637 in May 2022, dealer prices are now $410 below manufacturer’s suggested retail price.

Incentives are still below the 9.9 percent of ATP offered in May 2019 or the 7 percent still available to buyers in May 2021. However, dealers are offering bigger incentives than they have for at least a year, with the average now at 3.9 percent.

Front three quarters view of the 2024 GMC Sierra AT4X off-road truck.

Dealers are offering more incentives because available supply of vehicles, including GMC vehicles, continues to rise and inventories are growing. According to Cox research manager Rebecca Rydzewski, the “majority of luxury brands have higher inventory levels than the current industry average, along with all the domestic non-luxury brands.”

As a result, Rydzewski predicted, “industry average incentives will keep increasing.”

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