Average new-vehicle prices almost hit an all-time high in December - this according to the latest data shared by Kelley Blue Book (KBB). Its analysts say December marked the fourth straight month of price increases and that new-vehicle prices were close to the record high set in December of 2022. It's not usual, however, to see average transaction prices spike in December, since it's typically a month where we see a lot of end-of-the year luxury sales.
Here's a look at some of KBB's numbers:
KBB says new-vehicle ATPs were $49,740 last month, which is an increase of 1.3% year over year and up 1.5% compared to November 2024.
"It was a December to remember, in terms of both sales volumes and prices," said Cox Automotive Executive Analyst Erin Keating. "As we reported just after the election, consumer sentiment and confidence have been on the rise. Vehicles, especially luxury vehicles, are typically an emotional purchase, and when consumers are optimistic, they go shopping. Rates dipped for a short bit late in 2024, discounts were higher, and the glass was half full. No wonder we saw the lift in both prices and volume."
New-vehicle sales incentives in December didn't see a lot of movement from November, holding steady at 8.0% of ATP or approximately $3,958. KBB data shows that the average incentive package on a new vehicle was higher by 44% compared to December 2023, when incentives equaled approximately 5.5% of ATP.
Among large segments, December incentives were highest for Entry-Level Luxury Cars (10.0%), Compact SUVs (9.7%) and Luxury Compact SUVs (9.4%). They were lowest for Luxury Full-Size SUVs, Sports Cars, and Small/Mid-size Pickup Trucks.
According to KBB, Volkswagen, Ram and Nissan offered the largest incentives among volume automakers, with all of them being above 13% of ATP. Toyota, Land Rover and Porsche incentives were among the lowest in the industry.
As we know, luxury vehicles have a lot to do with ATPs . In a typical month, KBB says recent data suggests that approximately 4.4% of total industry sales in a given month, or roughly 60,000 units, are for deals priced above $80,000.
December was far from typical. KBB says last month approximately 84,000 vehicles – or 5.6% of total sales – transacted at prices higher than $80,000, the highest volume ever. Vehicles in this category include the Land Rover Range Rover, Cadillac Escalade, BMX X7, GMC Yukon and Tesla Cybertruck.
Full-size pickup trucks also continue to pull ATPs higher, with an average price $64,261. Segment volume was 223,293 units, according to KBB estimates, the highest point in 2024.
Seven brands saw drops in their ATPs year-over year.
The brands with notable year-over-year gains include Cadillac, with December ATPs higher by nearly 13% compared to year-earlier levels. Telsa prices were higher by 10.5%, and Infiniti transaction prices increased by 8.1% year over year to $65,667.
EVs Got Pricier in December, While Incentives Remain Elevated
KBB reports strong EV sales in December. An average transaction price of $55,544, helped push the industry-wide ATP higher. The December ATP for an EV was higher year over year by 0.8%, slightly below the industry average, and higher month over month by 1.1%. While EV incentives remained elevated in December, they were down month over month at 14.3% of ATP, down from 14.7% in November. EV incentives were higher by 41% year over year and have been above 12% of ATP for six straight months. Strong sales incentives, which averaged more than $6,700 per sale in 2024, were one reason EV sales surpassed 1.3 million units last year, a new record for volume and share.
KBB data tables are available for download here.
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