New-vehicle costs hit one other all-time excessive in August 2021, marking the fifth straight record-setting month, based on a brand new report from Kelley Blue E-book launched Sept. 14. At $43,355, the common transaction worth (ATP) for a brand new automobile was up practically 10% ($3,789) from one 12 months in the past in August 2020, and up 1.6% ($685) from July 2021.
But the all-time-high costs additionally accompanied the fourth straight month of a slowed gross sales tempo. After a frenzy of sturdy gross sales within the spring, the tempo of vehicle gross sales slowed once more in August 2021 as automotive consumers confronted restricted stock, excessive costs and traditionally low incentives. In reality, whole gross sales final month numbered simply 1,092,302 – among the many lowest month-to-month whole in a decade – and on the lowest quantity since April 2020, when the worldwide COVID pandemic initially shut down U.S. companies.
Incentive spending continued to fall as effectively, dropping to five.6% of ATP final month, a lower from 5.9% in July 2021 and effectively under the ten.1% of ATP recorded in August 2020. Porsche, Genesis, Land Rover and Subaru had among the many lowest incentive spend final month, all lower than 4% of ATP. Alternatively, Alfa Romeo, Buick and Infiniti every had incentive ranges at greater than twice the business common.
“The automotive business remains to be reeling from the extraordinary circumstances of the final 12 months and a half, setting new information seemingly left and proper,” mentioned Kayla Reynolds, analyst for Cox Automotive, within the information launch. “With the continued stock challenges that auto producers are going through throughout the board, coupled with traditionally low incentive spending, automotive consumers find yourself being those paying the value, fairly actually. New-car costs simply proceed to climb, month after month.”
Luxurious Automobile Costs Spike
ATPs in August had been pushed larger partly by sturdy luxurious automobile gross sales. Luxurious gross sales accounted for 16.2% of the overall market, up from 14.4% of whole gross sales in August 2020. Automobile consumers paid a mean of $58,766 for a luxurious automobile final month. Additional, many luxurious manufacturers, notably Acura, Cadillac, Genesis and Mercedes-Benz, achieved year-over-year ATP good points in extra of 20%. Cadillac, for instance, noticed ATPs soar up greater than 32% final month, reaching $74,332. Shoppers proceed to pay close to $100,000 for a brand new Cadillac Escalade, and greater than 2,000 new Escalades had been offered in August.
Transaction Costs Drop Yr-Over-Yr for Porsche, Fiat and for EVs
Almost each model noticed year-over-year worth good points final month, aside from Fiat and Porsche. Porsche continues to ship the business’s highest ATPs, at $96,344 in August, however noticed costs drop marginally (lower than 1%) on decrease gross sales of the model’s most costly sports activities automobiles, the 911 and Taycan. Porsche incentives, as measured in relation to ATP, are the bottom within the business, as effectively. Whereas Porsche occupies the ATP penthouse, Fiat lives on the different finish of the scales, promoting the most-affordable autos out there. In keeping with Kelley Blue E-book, the common transaction worth for a brand new Fiat final month was lower than $27,000, the bottom within the business. Fiat ATPs had been down 5% from August 2020, and the model solely 128 items offered final month.
Notably, electrical automobile costs declined year-over-year in August. New entries together with the Chevrolet Bolt EUV, the Ford Mustang Mach-E, and Volkswagen’s ID.4 helped drive down common electrical automobile costs from $57,346 to $49,938 year-over-year. Even the hyper-expensive Porsche Taycan was much less so in August 2021. A 12 months in the past, the common purchaser of the Porsche tremendous electrical was paying $152,509. Final month, the ATP fell to $123,371, a drop of 19% year-over-year. In distinction, gross sales of the Tesla Mannequin Y – the best-selling EV in America – elevated 3.7% year-over-year in August with an ATP of $58,966.
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Initially posted on Automobile Remarketing