New-Car Transaction Prices Up 2 Percent In March 2016, Along With Increases In Incentive Spend, According To Kelley Blue Book

IRVINE, Calif., April 1, 2016 /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 report the estimated average transaction price (ATP) for light vehicles in the United States was $33,666 in March 2016. New-car prices have increased by $645 (up 2 percent) from March 2015, while remaining flat from last month.

"March average transaction prices reveal continued increases for nearly every manufacturer, with the industry average up 2 percent year-over-year," said Tim Fleming, analyst for Kelley Blue Book. "While this may seem like good news for automakers and dealers, incentive spending continues to rise within the industry and offset part of this strength. Also, to afford the growing monthly payments, more consumers are financing these vehicles for 72 and 84 months, which will likely delay the purchase cycle for their next vehicle."

Fiat Chrysler transaction prices had the largest percentage increase of the major automakers at 3.3 percent year-over-year growth in March 2016. The Dodge brand jumped 5 percent on strong gains from the Challenger (up 9 percent) and Charger (up 7 percent), while the RAM brand grew 5 percent on a higher mix of pricier crew cab configurations for its pickup truck. Toyota Motor Company also had a great month, increasing average transaction prices by 3.1 percent year-over-year. The Toyota brand was up 4.7 percent, with increases on every model except the discontinued Venza. The Tacoma had the largest increase at 11 percent. Additionally, Lexus was up 2.7 percent, with the new RX rising 6 percent to an average transaction price of $50,713. However, not all brands fared well.   

"Volkswagen Group average transaction prices were down 4.5 percent as all of its brands fell year-over-year," said Fleming. "The Volkswagen brand fell the most, down 7 percent, as each model in its lineup was down from last year. The Jetta and Passat, two models affected by the brand's diesel crisis, both were down 9 percent."

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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 2015 Harris Poll EquiTrend^® study and has been named Online Auto Shopping Brand of the Year for four 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 nearly 30,000 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 55,000 employees. Cox Enterprises' other major operating subsidiaries include Cox Communications and Cox Media Group. For more information about Cox Automotive, visit www.coxautoinc.com.

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SOURCE Kelley Blue Book