The average transaction price or ATP of a new Buick vehicle in November 2023 dropped for the second month in a row, declining 6.4 percent year-over-year to $37,185 from the brand’s $39,726 new-vehicle ATP in November 2022.
However, Buick ATP did increase from last month, growing 1.7 percent month-over-month according to research data from Cox Automotive and Kelley Blue Book or KBB.
Buick was one of sixteen brands out of 35 in the study which registered decreasing ATPs for November 2023. Its new-vehicle average prices also fell year-over-year in October 2023, posting a 6.5-percent drop. Turning the clock back a year, the brand’s ATP also sank in November 2022 compared to November 2021, though only by 1 percent.
Buick was the only GM brand to see ATP fall year-over-year, with Cadillac, Chevy, and GMC all enjoying rising average prices at 4.2 percent, 0.2 percent and 7.8 percent gains respectively. Overall, The General’s prices increased by a modest 0.8 percent.
The luxury sector, which Buick belongs to according to Cox and KBB classification, saw ATPs plunge 7.5 percent year over year. Non-luxury brands were close to price stability with a 0.3-percent ATP loss compared to November 2022. However, this resulted from skyrocketing incentives – up 136 percent from a year ago – rather than lower MSRPs, since retail prices climbed 1 percent, continuing a decade-long trend in which overall MSRPs has not once retreated.
The rise of incentives shows the changeover from a seller’s market to a buyer’s market is well under way. Cox research manager Rebecca Rydzewski stated “dealers are seeing profits contract as inventory levels return to normal, and incentives are turned up to help stimulate sales.” Luxury vehicles have incentives above 8 percent currently, contrasting with the much lower non-luxury incentives hovering at 5 percent (versus the pre-pandemic 10.5 percent in November 2019).
The lower after-incentive prices for luxury vehicles, including Buick, are helping to drive increasing sales volume. While non-luxury models saw 5.9-percent growth in sales relative to last year, luxury sales skyrocketed by a whopping 19.6 percent. This propelled the luxury sector to an all-time record market share of over 20 percent.
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Comments
What transactions? They don’t have anything to sell. Pretty soon they won’t have any dealers.
They’re average prices gonna go down again. Because the Envisions not gonna be available until end of 2024. Don’t get it. I ordered in October. Expecting it in May now is scheduled for he end of the year.