A recent update from Kelley Blue Book reveals that new vehicle transaction prices in the United States declined even more in September. This, they said, was led by Tesla’s price cuts that saw electric vehicle prices go down more than 22 per cent year-over-year — declining from $65,295 to $50,683.
In a news release, KBB said the average price American consumers paid for a new vehicle in September dropped 3.4 per cent from the beginning of 2023, due largely to higher inventory levels and the impact of increased incentives, which continued to place a downward pressure on pricing. Thus, the average transaction price of a new vehicle in September was $47,899 — a drop of $360 from the same period in 2022.
“After new-vehicle prices peaked at nearly $50,000 at the start of 2023, we’re seeing average transaction prices dip below $48,000 for the first time in more than a year,” said Rebecca Rydzewski, Research Manager at Cox Automotive, in a statement. “Dealers and automakers are feeling price pressure, and with auto loan rates at record highs and growing inventory levels, new-vehicle prices continue to ease.”
With the UAW strike and in the face of lower inventory levels, KBB indicated that General Motors pulled back on sales incentives last month. Rydzewski said that if the strike is short-lived, “current inventory levels are healthy enough to prevent any significant impact on consumer prices.”
As for Tesla, KBB said this year’s luxury price declines are mainly driven by aggressive price cuts at Tesla. “Compared to September 2022, Tesla transaction prices are down 24.7 per cent,” they said, adding that average transaction prices for Tesla are now lower than Acura, Lexus, Infiniti and Volvo.
