June new auto prices in the US soared to a record high of over $48,000 USD, reported the latest data release from Kelley Blue Book. The new-vehicle ATP increased to $48,043, overtaking the previous high of $47,202 set in December 2021. The report found that “June prices rose 1.9% ($895) from May and were up 12.7% ($5,410) from June 2021.”
In terms of inventory, days’ supply was stable in the high 30s in June after being in the mid-30s since mid-January. “Customer demand remains strong given continued supply issues. These conditions enabled most dealers to continue selling inventory at or above the manufacturer’s suggested retail price (MSRP).
“While prices for the industry are, on average, higher than MSRP, there are some non-luxury segments that are more affordable such as compact cars and compact SUVs/crossovers,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “These segments are selling for more than 30 per cent less than the industry average transaction price.”
In the US, as in Canada, the average price paid for a new vehicle has been “over sticker” throughout 2022. In June, new vehicles from Honda, Kia and Mercedes-Benz were transacting on average between 6.5% and 8.7% over MSRP. On the other side of the spectrum, Buick, Lincoln and Ram were selling at nearly 1% below MSRP.
The average price paid for a new electric vehicle (EV) increased in June by 3.8% compared to May and 13.7% versus a year ago. Hybrids have been in the lowest supply lately of any segment. With an ATP of $66,997, electric vehicles saw an increase of $2,444 in June. Incentives dropped to a record low level in June, averaging only 2.3% of the average transaction price.
