In May 2023, the average transaction price (ATP) of a brand-new Chevy product stood at $48,566 per vehicle. With that in mind, ATP figures for the Bow Tie brand have declined on a year-over-year basis.
According to a report from Cox Automotive and Kelley Blue Book (KBB), the ATP for a Chevy vehicle fell 3.0 percent from May 2023 levels to $47,090 in May 2024. Similarly, the average transaction price dipped 0.7 percent month-over-month from $47,421 in April 2024.
This decline in Chevy ATP figures is reflected by a year-over-year decline in transaction prices for parent company General Motors. When including all four of GM’s U.S.-market brands in the calculations – Chevy, Buick, Cadillac, and GMC – the ATP for a new GM vehicle was $51,239 in May 2024. This represents a 2.0-percent decrease as compared to the May 2023 figures, where GM’s ATP number stood at $52,268 per vehicle. On a month-over-month comparison, General Motors’ average transaction prices dropped 0.6 percent from $51,806 in April 2024, slightly outperforming the Bow Tie brand.
Overall, the automotive industry recorded a 0.9-percent decline in ATP figures year-over-year from $48,830 in May 2023 to $48,389 in May 2024. Meanwhile, ATPs stayed flat month-over-month, where vehicles were selling for an average of $48,368 in April 2024.
“In May, we saw some positive news on the sales front,” Cox Automotive Executive Analyst Erin Keating remarked. “A lot of those sales gains were juiced by higher incentives and lower prices, which is good news for consumers worrying about inflation. While there are a lot of vehicles transacting at very high prices, that doesn’t mean all new vehicles are unaffordable. There are still plenty of excellent, well-priced vehicles out there, particularly in the compact segments.”
“It’s called an average for a reason,” Keating added. “The U.S. market is very diverse, with plenty of popular, high-priced vehicles that sell very well and drive the average higher. The popularity of fully loaded, full-size pickup trucks that are more luxurious than many luxury vehicles is unique to the U.S. market. The Ford F-Series outsold BMW 2-to-1 in May, and BMW’s ATP was only marginally higher than the F-Series.”
It’s worth noting that the report identified three factors that contributed to these changes in May 2024 ATP figures, including:
- The diverse U.S. market is complicating the price picture
- Higher inventory and lower prices go hand-in-hand
- EV prices climb as Tesla prices gain
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Comments
Trax is driving down Chevy’s ATP. It is now second only to Silverado in sales and Trax demand is still very strong. Silverado has to be discounted to sell.
You hit the nail on the head! I am the inventory manager at a Chevy store and our shipments of the new Trax and Trailblazer recently increased exponentially. They are both flying off of the lot just as fast as they arrive. We finally have what I would consider to be an extremely competitive, and dare I say, superior product to most in their class. Of course I am not biased :p
Interesting that most people had never heard of Trax and there was almost no advertising, but everyone discovered it and now it is the best seller in its segment despite being FWD only. I love my new black Trax and it is basically flawless.
The reason is there were virtually none in inventory so advertising a vehicle that we didn’t have would have been pointless. They have made that mistake in the past and they are finally paying attention to that. Also what few we received were either pre-sold or sold the day they rolled off of the truck.
My point is that when you have a great product, people will find it themselves without advertising and regardless of media criticism about a “lack” of certain features, i.e., the media did not like the FWD only or 3 cylinder only engine. Didn’t matter.
Of course, being GM there was a face plant right out of the gate when they could not ramp production and delivery for a year. Now Trax is going to dominate GM SUVs for years to come which is ironic since it is made in Korea. Buyers don’t care about that either. Sorry UAW.
Spot on Paul
I do remember decades ago the fact that they are made in Korea and not here was an issue for many buyers. These days, not so much.
Heavy internet ads geared toward the younger crowd
I would guess lots of seniors are buying Trax because they can figure out a good deal based on years of experience. Young people don’t know cars so they just buy the brands: Honda, Toyota with good reputations. They have never heard of Trax so don’t trust it.
Looks, price and the ginormous 11.4″ infotainment display
Interior space, fuel efficiency, low, low price. Seniors have been around the block a few times and can recognize a good deal. BSM, heated steering wheel and seats are all bonus points.
At this point in time last year we had sold 4 Trax. This year we are sitting at 16, which would be even higher if we had more of them! Pair them with the slightly larger, higher contented, and of course priced, Trailblazer and we Chevy dealers have a formidable one-two punch in that segment.
It wasn’t that long ago that the future Hudson tenants were beaming with growing ATP’s and that volume did not matter for the new gm. Now that the economy is softening for many, fewer seem to be willing shell out the cash or mortgage-like payments for a mall cruiser. Who knew that an affordable small SUV with style would sell?
The Koreans knew. GM USA builds ginormous SUVs like Escalade that cost $100K+. Clueless.