New-vehicle prices climbed 3% year over year, averaging $37,285 in June, according to Kelley Blue Book.
KBB analysts attributed the transaction price growth to the persistent demand for trucks and SUVs, pushing both sales and prices in those segments. In fact, light trucks and SUVs are estimated to account for more than 70% of June sales, up from 68% in the year-prior period.
That’s good news for OEM captives.
“At Ford, the F-Series has always been the cash cow for both the company and Ford Credit,” said Autotrader Executive Analyst Michelle Krebs. “As the Ram pickup becomes an even bigger part of the FCA business in the U.S. – in June, Ram pickup sales accounted for roughly one-third of total FCA sales – it will help both the company and their F&I partner,” she added.
The EV segment, on the other hand, experienced a year-over-year 18.8% drop in average transaction price in June, to $55,600 from $68,500.
That decrease was largely influenced by Tesla’s price reduction of its Model 3, a strategy the automaker is carrying out this year, Krebs said. Those numbers may bounce back as Audi and Porsche take their electric vehicles to the market in the coming months, she added.