Average New-Vehicle Prices Remain Above $40,000 Threshold, Increase More Than 4% Year-Over-Year, According to Kelley Blue Book

IRVINE, Calif., April 15, 2021 /PRNewswire/ -- The valuation analysts at Kelley Blue Book today reported the estimated average transaction price for a light vehicle in the United States was $40,472 in March 2021. New-vehicle prices increased $1,660 (up 4.3%) from March 2020, while dropping $608 (down 1.5%) from February 2021.   

"March average transaction prices continued to perform above the threshold of $40,000, even with near-record retail volume last month, " said Kayla Reynolds, industry intelligence analyst at Cox Automotive. "The Electric Vehicle category is a segment to watch, as affordable new models continue to roll in and drive down year-over-year pricing."

Most manufacturers saw year-over-year movement in average transaction prices for March 2021, with Volkswagen Group reporting the largest increase from last year (up 15.4%). Audi (up 10.8%) and Volkswagen (up 10.7%) were included in the top 10 year-over-year brand increases, while Porsche had a 0.5% decline from March 2020. Audi's second most expensive model, the A7, with an average transaction price of $102,000, more than doubled its year-over-year sales for March 2021. The Porsche Taycan, which has an average transaction price of $137,000, saw a more than 30% drop in its average transaction price, impacting the brand's average price. The Taycan was newly launched in the first quarter of 2020, and prices are often elevated with initial sales.

At the segment level, Minivans had the biggest year-over-year growth, up 16.75%. The High-Performance segment followed closely behind with more than 11% growth year-over-year in the average transaction price. Electric Vehicles had the largest drop in transaction pricing year-over-year for March, down 4.93%.

While electrified vehicle consideration increases, automakers have continued producing more affordable options. Ford has introduced the Mustang Mach-E, which is reasonably priced with an average transaction price of $56,000 in March 2021, just above the segment average. The new Volkswagen ID.4, which began sales in Q1, is transacting at $45,287. Additionally, because Tesla is the brand with the majority market share, the drop in price for the Model 3 (down 7% year-over-year) and the introduction of the Model Y (priced at $54,000) has shifted the average transaction price of the segment as a whole. Lower prices for the Porsche Taycan also helped drive down average pricing in the segment.

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About Kelley Blue Book (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 market-reflective values on its top-rated website KBB.com, including its famous Blue Book® Trade-In Values and Kelley Blue Book® Price Advisor tool, which provides a range for what consumers can reasonably expect to pay for a vehicle in their area. Car owners looking to sell immediately can also get a redeemable, transaction-ready offer with Kelley Blue BookSM Instant Cash Offer. 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 is a Cox Automotive brand.

About Cox AutomotiveCox Automotive Inc. makes buying, selling, owning, and using vehicles easier for everyone. The global company's more than 27,000 team members and family of brands, including Autotrader®, Clutch Technologies, Dealer.com®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital®, VinSolutions®, vAuto®, and Xtime®, are passionate about helping millions of car shoppers, 40,000 auto dealer clients across five continents and many others throughout the automotive industry thrive for generations to come. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with annual revenues of nearly $20 billion. www.coxautoinc.com

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SOURCE Kelley Blue Book