Average transaction price (ATP) for new vehicles has skyrocketed over the past year. Especially for truck makers. Benefiting from incredible demand, inflation, and a market taste for finer things, Chevrolet now has a higher ATP than the likes of both Alfa Romeo and Acura luxury brands, with vehicles in September 2021 selling at an average of $50,451 USD. Ford also saw ATP skyrocket, coming in just above Chevrolet at $50,853 USD. To put it in perspective, brands like Honda and Toyota, where conventional wisdom would have these two marques competing directly with the likes of Chevy and Ford, are at between $33,000 and $39,000 USD.
Other brands like Cadillac, GMC, Dodge, Ram and Jeep all saw dramatic rises in ATP.
How Big Of a Jump?
In one word, significant. A year ago the average price of a new vehicle was $40,159. Today that number is $45,031 a change of $4,872. This is the first time ever the average price of a new vehicle has surpassed $45,000 according to Kelley Blue Book. Chevrolet’s ATP went from $40,903 in September of 2020 to $50,451 in September 2021. That’s a spike of almost $10,000, or 23.3 percent.
Cadillac saw one of the biggest changes in ATP from last year going from $54,202 in 2020 to a whopping $81,938 in 2021, a change of almost $30,000, or 51.2 percent. That’s the magic and demand of the Cadillac Escalade for you. Also for General Motors, GMC product ATP grew 13.6 percent, up to $61,557 USD on the backs of the popular Sierra and Yukon families.
Ford saw a little smaller rise in price going from $45,677 to $50,853 an increase of $5,176. Lincoln grew 8 percent to $62,394 USD. Both on the backs of strong SUV and truck demand such as the F-150 Limited and the Lincoln Navigator.
Over at Stellantis, Dodge saw ATP grow 18.4 percent, from $38,048 USD to over $45,000 USD. Charger and Challenger Scat Pack sales will do that. Ram saw ATP grow 7.4 percent, coming in at $55,383 USD, and Jeep ATP rose 11.4 percent, coming in at $44,445 USD for September 2021.
What Causes The Rise In Vehicle ATP?
Per the report, the mix of vehicles sold are the primary cause for the overall distortion. More people are buying fashionable utility vehicles like the Cadillac Escalade and Ford Bronco than more moderately priced entry level sedans. Automakers are also prioritizing these high-demand vehicles during this ongoing microchip shortage, and as a result, there simply aren’t other vehicles to sell. Further distorting the numbers are lower sales overall, meaning a higher concentration of high ATP trucks and SUVs for the Detroit Three automakers. But as long as this squeeze keeps up, so will with rise in transaction prices.