New-Car Transaction Prices Reach Record High, Increasing Nearly 2 Percent Year-Over-Year In December 2016, According To Kelley Blue Book

IRVINE, Calif., Jan. 4, 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 $35,309 in December 2016, an all-time record high.  New-car prices have increased by $521 (up 1.5 percent) from December 2015, while rising $166 (up 0.3 percent) from last month. 

"Even though transaction prices are at an all-time high, incentives have grown similarly to counterbalance the increased prices," said Tim Fleming, analyst for Kelley Blue Book.  "Higher average transaction prices are reflective of the rapid shift in consumer demand away from cars and into trucks and utility vehicles, which are more expensive.  Should the sales mix of cars to SUVs reach a stable point in the near future, actual transaction price growth could match or fall just short of inflation."

Fiat Chrysler rose a solid 3 percent in December 2016, with increases coming from its Chrysler, Dodge and Jeep brands.  The Chrysler brand was up 10 percent on the strength of the Pacifica minivan, as well as fewer sales of the 200 sedan.  The Dodge brand was up 5 percent on a lower mix of its compact car, the Dart, and strong performance from the Charger.  Finally, Jeep is up 2 percent, thanks to a strong month from the refreshed Grand Cherokee, which was up 3 percent.

Another strong domestic automaker, Ford Motor Company, improved 3 percent, due to the Explorer, which was up 11 percent on a strong mix of its Sport and Platinum trims.  The refreshed Escape also was up 3 percent, while the reinvigorated Fusion climbed 4 percent.  The Lincoln brand increased 3 percent, as the Continental helped the brand's average by transacting at $57,156. 

In addition, American Honda's transaction prices were flat overall, with the Acura brand up 1 percent, while Honda was flat.  The Honda Civic, now in its second year of production for the current generation, was up 4 percent, thanks to the recent launch of the hatchback variant. 

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About Kelley Blue Book (https://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