While the average transaction price (ATP) for Buick vehicles rose slightly month-over-month in August, edging upward by 1.5 percent, the downward pressure from rising inventories in the auto market overall dropped the price of Tri-Shield brand vehicles by almost a tenth since last year.
As the economy and the upcoming election depress the car market in the U.S. even while a stronger flow of vehicles is arriving at dealer lots, new Buicks are fetching 7.1 percent less on average than they did in August 2023, according to Cox Automotive and Kelley Blue Book figures.
Falling August prices for new vehicles is now a two-year trend for Buick, with the typical Tri-Shield car now commanding an ATP of $33,767, down consistently over 24 months from the August 2022 peak of $38,492. The brand may offer a bargain for new car buyers given that its ATP is falling much faster than both GM overall – 2.9 percent – and the whole industry – 1.7 percent.
Buick was one of several brands to sharply increase its incentives as late summer arrived this year. These boosted discounts are typical for the auto market in the United States at the moment, with the average incentive approximately 50 percent higher than in summer of last year. Only a handful of expensive brands with very limited inventory are still offering small discounts compared to the industry.
Erin Keating, a Cox analyst, remarked on the emergence of a buyer’s automotive market by pointing out how “in the face of a sluggish sales pace – 15.1 million in August – more dealers are pulling the only lever they have: higher incentives.”
While the Tri-Shield’s prices are heavily discounted compared to just two years ago, its ATP might have fallen even more if it had a different lineup of styles. Pickup trucks and SUVs are seeing even bigger dealer discounts than crossovers and sedans, while EV incentives are approaching a level 80 percent higher than those offered for either gasoline or diesel vehicles as electric vehicle demand remains relatively weak.
Comments
Because the Envista is finally starting to be discounted. Problem is, few are STILL on the East Coast. Get it together, GM!
I haven’t seen a discount on Envista at all. But, there are more available than in the past so even selling at MSRP, if you are selling more Envistas, your avg transaction price is going to go down.
The 2024 Envista is selling in Southern California below MSRP 2025 are selling at MSRP
It’s the product mix causing the change in ATP. Stronger growth in Envista compared to the others.
That and the 98 days supply of vehicles they have on the ground.