KBB: New Vehicle Prices Rise Again In April

Kelley Blue Book reports consumers continued to pay above manufacturer's suggested retail price (MSRP) for a new vehicle in April - marking the 11th consecutive month of "over-sticker" prices. KBB says that new-vehicle average transaction prices (ATPs) increased to $46,526 in April 2022, a:

•  0.7% ($304) month over month increase
• 13 percent jump ($5,354) from April 2021. 

Consumers aren't getting much in the way of incentives either.  Those dropped to a record low in April, averaging only 2.8% of the average transaction price.

KBB researchers attribute the over MSRP prices and market conditions to continued high consumer demand amid low inventory shortages. In April, KBB says new vehicles from Honda, Land Rover and Mercedes-Benz were transacting on average between 5.8% and 8.0% over MSRP. On the other side of the spectrum, Fiat, Lincoln and Ram were selling around 1% below MSRP.

"For nearly a year now, we've seen new vehicles transacting above suggested retail prices," said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. "High prices, a lack of inventory, few incentives – the market is changing, pushing many would-be buyers to the sidelines and forcing others to order from future stock and wait. We expect new-vehicle affordability will be a challenge for the foreseeable future."

Non-Luxury VS Luxury Vehicles

There's roughly a $23,000 difference between the average transaction prices of non-luxury and luxury vehicles. 

Non-Luxury

The non-luxury vehicle ATP last month was $42,509, up $186 from March. That equates to an average $862 above sticker price.  KBB says consumers have paid more than MSRP for each of the last 11 months, quite a contrast from a year ago when non-luxury vehicles were selling for more than $1,000 under MSRP.

Luxury Vehicles

In April 2022, the average luxury buyer paid $65,628 for a new vehicle, down $4 month over month but still $1,865 above sticker price. Last year luxury vehicles were selling for $1,850 under MSRP. KBB reports that luxury vehicle market share rose to 17.4% of total sales in April, up from 16.7% of total sales in March, however down from 18.4% in December 2021, when the ATP for a new vehicle hit a record high of $47,064.  

Electric Vehicles

EV average transaction prices dropped in April over March. Kelley says the drop is thanks to more lower-priced models entering the market which is offsetting a large number of luxury electric vehicles.  It cites one example s the Chevrolet Bolt which is back in the market after an extensive recall and the new Kia EV6  which is selling well.  Even Tesla had slightly lower ATPs month-over-month in April.  All this said, keep in mind, average price for a new electric vehicle is over $65,000 according to KBB estimates, well above the industry average and more aligned with luxury prices than mainstream prices.

Month-Over-Month ATP

Now a look at KBB's new-vehicle average transaction price changes month over month. The data shows that all segment increased except cars, a reversal of March.

• Trucks saw the largest increase of $621 with an ATP of $55,210.
• Vans saw an increase of $136 in April with an ATP of $47,731.
• SUVs increased by $391 to an ATP of $45,290.
• Cars decreased $101 with  had an April ATP of $42,165 .

 Incentives dropped to a record low level in April, averaging only 2.8% of the average transaction price. Vans still had the lowest incentives (expressed as a percent of ATP) at 1.2%, and trucks had the highest at 3.3%.

For pricing by category visit KBB.

Photo Credit: Julia Shamayaeva/Shutterstock.com.