Responsive to overall auto market trends that see the average transaction price (ATP) for new vehicles down about 0.4 percent in September 2024, GMC‘s ATP dropped 1.3 percent to $66,183 compared to September of last year.
Cox Automotive and Kelley Blue Book report that GMC ATP for September is up about 1.4 percent relative to August, once again following the general market trend, though overall prices are up just 0.8 percent month-over-month.
While GMC prices are slumping a little year-over-year, Big Red’s pricing has made robust gains in both the shorter and medium term, meaning the modest September ATP drop hasn’t significantly dented a general upward trajectory for the brand. Average prices increased 2 percent year-over-year in August 2024, and soared about 11 percent a year ago in September 2023.
GMC has maintained its price momentum despite declining prices in several of its leading segments. These include full-size pickup trucks like the GMC Sierra, with such pickups losing 1.3 percent ATP year-over-year in the wider market, and full-size SUVs like the GMC Yukon, with SUV prices dropping 2.8 percent overall across the whole U.S. auto sector.
Incentive spending has been increasing steadily for a quarter and has now reached 7.3 percent of ATP for American new vehicle sales as a whole. The figure was 4.8 percent back in September 2023. Cox executive analyst Erin Keating says “higher incentive spending is helping maintain sales volume,” but points out that “the uncertainty of a national election around the corner and major weather events disrupting business” could ensure sales remain relatively steady.
Mark Reuss, president of General Motors, struck a more positive note for the automaker’s brands, including GMC, at the Investor Day presentation. He noted that “our incentive spend as a percentage of ATP is among the lowest of all major OEMs at 4.5 percent for quarter three,” which, he points out, “is 2.4 points lower than industry average, which is material and substantial.”
Reuss concludes that “great products and right-size inventory are what have enabled us at consistently lower incentive spend compared to the industry.”
Comments
I think slow down in sales and buying lower priced vehicles is a response to the
high sticker prices on virtually every vehicle out there…. and GM is doing their share to keep
prices high
Amen to that 👍
drop the pricing and a good chance GMC sales will get better ,
interested in buying brand new but not at those prices