#USA #Atlanta #electric vehicles #Cox Automotive #Kelley Blue Book

Summary of the Kelley Blue Book June Report

In June, Kelley Blue Book, part of Cox Automotive, indicated a noticeable rise in new vehicle costs. The average transaction price (ATP) for new vehicles reached $48,907, marking a 0.4% increase from May's revised figure of $48,717. This year-on-year rise of 1.2% is significant, but still trails the long-term average growth of 3.9%. As sales incentives see only a modest rise, the overall sales pace for new vehicles slightly decreased, indicating a potential market cooling from the robust early season surge.

Key Findings

1. Transaction Prices: While the average transaction price increased marginally, it remains low relative to the manufacturer's suggested retail price (MSRP), which climbed to an average of $51,124 in June. This marks the third consecutive month of MSRP increases, indicating that consumers may not see equal benefits from the lower transaction prices in correlation with rising costs for manufacturers.

2. Sales Data: With sales dipping to an adjusted annual rate of 15.3 million units, a decrease from May's rate of 15.6 million, there's a growing inventory within the market, up to 82 days' worth of supply. This rise in inventory often leads to higher discounts, which have recently climbed to 6.9% of ATP, slightly up from 6.5% last year.

3. Electric Vehicle Market: Electric vehicles (EVs) saw a notable increase in incentives, now averaging 14.8% of ATP, with an average price decrease of 2.8% year-over-year. Despite the drop in pricing, sales of EVs for Q2 lagged compared to previous periods, a reflection of market leader Tesla's declines in sales.

Industry Perspective

Erin Keating, Executive Analyst at Cox Automotive, highlighted that the upcoming months might present 'the big squeeze.' The juxtaposition of increasing costs for manufacturers and stagnant consumer prices could lead to challenges in overall profitability for vehicle sellers. As average MSRPs continue to rise and transaction prices remain static, this disparity may begin to manifest in the automotive market dynamics, requiring adaptations from both sellers and buyers.

The End of an Era

June also witnessed the discontinuation of the Mitsubishi Mirage, the last remaining model selling below $20,000. With dwindling inventory, it's predicted that this price segment will soon vanish, marking a notable shift in the vehicle market landscape.

Moving forward, consumers and industry experts alike will be watching intently for changes in pricing trends, sales incentives, and inventory levels, as the automotive landscape continues to evolve amid these financial dynamics.

About Kelley Blue Book

Founded in 1926, Kelley Blue Book has been a trusted resource for vehicle valuation and information. Its services offer renowned transparency and objective data, aiding both consumers and automotive professionals in fair valuation and decision-making processes in the automotive marketplace. Through continuous innovation and extensive market analysis, Kelley Blue Book remains the leading authority in vehicle pricing and appraisal within the industry.

For further details, consult Kelley Blue Book's comprehensive report on automotive trends and pricing dynamics, reflecting real-time market conditions.