New-Car Transaction Prices Up Nearly 2 Percent Year-Over-Year, Down From Last Month, According To Kelley Blue Book

IRVINE, Calif., April 3, 2017 /PRNewswire/ -- The analysts at Kelley Blue Book www.kbb.com, the vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry, today reported the estimated average transaction price (ATP) for light vehicles in the United States was $34,342 in March 2017. New-car prices have increased by $587 (up 1.7 percent) from March 2016, while falling $133 (down 0.4 percent) from last month.   

"New-car prices are up yet again by just under 2 percent, which is a slightly lower increase than in the first two months of the year," said Tim Fleming, analyst for Kelley Blue Book. "While numbers for automakers are mostly flat to slightly positive, there are signs of weakness in some popular vehicle segments. Perhaps most notably, the full-size truck segment is down 2 percent year-over-year, a rare occurrence for this category, which has seen large price improvements over the last few years. Also, transaction prices for subcompact SUVs, one of last year's hottest segments, are down 3 percent as demand for the small utility vehicles appears to be leveling off."

Rising incentives and discounts on cars have become common, but now they are growing more in truck and SUV segments, due to slowing consumer demand for new vehicles and high levels of inventory available.

Nissan North America is up 5 percent again in March 2017, continuing a strong run of improving transaction prices. The Nissan brand rose 5 percent on a much higher mix of SUVs versus last year, led by the Rogue. The redesigned Armada climbed 18 percent as it attempts to make headway in the full-size SUV segment, which has traditionally been dominated by General Motors. Infiniti was up just 1 percent, helped most by the Q50 sedan, which was up 6 percent, and the recently redesigned Q60 coupe, also up 6 percent.

On the other hand, Volkswagen Group average transaction prices fell more than 2 percent, although the Audi brand did rise 5 percent. Audi's redesigned A4 sedan was up 7 percent, while the new A4 allroad was up 11 percent. Meanwhile, Volkswagen was flat, while Porsche was down 7 percent on a higher mix of its entry-level model, the Macan. 

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About Kelley Blue Book (www.kbb.com/)
Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry. Each week the company provides the most market-reflective values in the industry on its top-rated website KBB.com, including its famous Blue Book® Trade-In Values and Fair Purchase Price, which reports what others are paying for new and used cars this week. The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies, and governmental agencies. Kelley Blue Book's KBB.com ranked highest in its category for brand equity by the 2016 Harris Poll EquiTrend^® study and has been named Online Auto Shopping Brand of the Year for five consecutive years. Kelley Blue Book Co., Inc. is a Cox Automotive brand.

About Cox Automotive
Cox Automotive Inc. is transforming the way the world buys, sells and owns cars with industry-leading digital marketing, software, financial, wholesale and e-commerce solutions for consumers, dealers, manufacturers and the overall automotive ecosystem worldwide. Committed to open choice and dedicated to strong partnerships, the Cox Automotive family includes Autotrader®, Dealer.com®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital®, vAuto®, Xtime® and a host of other brands. The global company has 33,000 team members in more than 200 locations and is partner to more than 40,000 auto dealers, as well as most major automobile manufacturers, while engaging U.S. consumer car buyers with the most recognized media brands in the industry. Cox Automotive is a subsidiary of Cox Enterprises Inc., an Atlanta-based company with revenues of $18 billion and approximately 60,000 employees. Cox Enterprises' other major operating subsidiaries include Cox Communications and Cox Media Group. For more information about Cox Automotive, visit www.coxautoinc.com.

SOURCE Kelley Blue Book