The average transaction price (ATP) for new vehicles is forecast to increase 2.4% year over year, reaching $35,932 as of December 2019, according to ALG data.
New-vehicle ATP’s increased every month last year, largely due to consumers opting for higher-priced vehicle segments such as trucks and SUVs, said ALG’s Chief Economist Oliver Strauss.
Hyundai and Kia showed the highest increase in ATP year over year, up 10.7% to $25,380, and 7.7% to $24,584, respectively. ALG attributes the uptick to the OEMs’ SUVs that “continue to resonate with consumers,” the report noted.
On the other hand, Nissan and Honda are the only OEMs expected to post year-over-year decreases in ATP. Nissan’s ATP is forecast to drop 1.7% to $28,145, while Honda’s ATP is likely to decrease 1.4% to $28,496.
In the luxury segment, BMW’s ATP is anticipated to increase 5.6% year over year to $57,083 — a $3,000 increase. Daimler’s transaction price remains the highest of all the top 12 OEMs at $60,672.
Revenue from new-vehicle sales are also projected to increase by 2.5% year over year, reaching $56 billion for the month.
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