The average transaction price for a new vehicle in the United States was up to $48,528 in May 2023, representing a month-over-month increase of 0.5% ($251) from Kelley Blue Book’s revised April reading of $48,277. During this period, incentives continued to rise.
New vehicle sales incentives climbed to the highest level in a year in May — averaging $1,914 (or 3.9%) of the average transaction price, which was up less than 1% from April and 3% from year-ago levels. A year earlier, in May 2022, average incentive spending was 2.5% of the average transaction price.
“The modest new-vehicle price increase in May was offset by increased incentives, so many buyers were able to find deals below sticker,” said Rebecca Rydzewski, Research mManager of Economic and Industry Insights for Cox Automotive, in a statement.
Rydzewski described the situation as “good news” for consumers, as OEMs are noting higher inventory and increased competition “and need to push sales to keep inventory moving.”
In terms of vehicle categories, KBB said the average price consumers paid for a new non-luxury vehicle in May was $44,960 — up $158 compared to April. During the same period, the average luxury buyer paid $64,396 for a new vehicle, which represents an increase of $239 from April.
On the electric vehicle front, the initial estimate for the average price consumers paid for an EV in May is $55,488 — down more than $9,000 from May 2022. Michelle Krebs, Executive Analyst at Cox Automotive, said OEMs are trying to find a balance between pricing and profitability.
“EV sales in May are estimated to have increased by 4.7% compared to April and are up 44% year-over-year,” she added in a statement, while also noting that the increase is the result of tax credits and OEM incentives.
