While the average transaction price for a new vehicle sold by GM’s quartet of core brands grew in September 2023, Buick‘s ATP fell 7.8 percent year-over-year from $39,531 in September 2022 to $36,454 last month, according to recent data.
In addition, Buick ATP rose 0.7 percent in September compared to August 2023 figures, research by Cox Automotive and Kelley Blue Book revealed.
High inventory may be contributing to declining Tri-Shield prices, since the brand’s overall number of vehicles on dealer lots ran at 82 days supply in September, well above the 60 days supply considered optimal by the auto industry. Meanwhile, the overall ATP for parent company GM rose from $52,226 a year ago to $52,736, a 1 percent gain. The General’s ATP also rose 1.2 percent month-over-month.
Average transactions price fell during September 2023 in the U.S. auto market as a whole as higher supply and the highest incentives in two years took a bite out of prices. The industry ATP of $47,899 was only 0.7 percent lower than during September 2022, but is down 3.4 percent from the January 2023 peak.
Zooming in on the details of ATP in the general auto market, the decline in average new-vehicle prices is mostly driven by luxury and EV brands. ATPs in the non-luxury sector where Buick operates rose approximately 1 percent year-over-year, but declined in September 2023 compared to the month before.
Luxury vehicle prices plunged by 6.2 percent since a year ago, registering the biggest price drop in a decade according to the report. EV prices fell even faster, decreasing 22.4 percent. The latter decline is mostly because of Tesla’s decision to cut its prices. While competitors have squeezed Tesla market share down to 50 percent, it is still big enough for its pricing adjustment strategies to affect the whole electric vehicle segment.