Thu, 15 April 2021 | transportation
The valuation analysts at Kelley Blue Book today reported the estimated average transaction price for a light vehicle in the United States was $40,472 in March 2021. New-vehicle prices increased $1,660 (up 4.3%) from March 2020, while dropping $608 (down 1.5%) from February 2021.
"March average transaction prices continued to perform above the threshold of $40,000, even with near-record retail volume last month, " said Kayla Reynolds, industry intelligence analyst at Cox Automotive. "The Electric Vehicle category is a segment to watch, as affordable new models continue to roll in and drive down year-over-year pricing."
Most manufacturers saw year-over-year movement in average transaction prices for March 2021, with Volkswagen Group reporting the largest increase from last year (up 15.4%). Audi (up 10.8%) and Volkswagen (up 10.7%) were included in the top 10 year-over-year brand increases, while Porsche had a 0.5% decline from March 2020. Audi's second most expensive model, the A7, with an average transaction price of $102,000, more than doubled its year-over-year sales for March 2021. The Porsche Taycan, which has an average transaction price of $137,000, saw a more than 30% drop in its average transaction price, impacting the brand's average price. The Taycan was newly launched in the first quarter of 2020, and prices are often elevated with initial sales.
At the segment level, Minivans had the biggest year-over-year growth, up 16.75%. The High-Performance segment followed closely behind with more than 11% growth year-over-year in the average transaction price. Electric Vehicles had the largest drop in transaction pricing year-over-year for March, down 4.93%.
While electrified vehicle consideration increases, automakers have continued producing more affordable options. Ford has introduced the Mustang Mach-E, which is reasonably priced with an average transaction price of $56,000 in March 2021, just above the segment average. The new Volkswagen ID.4, which began sales in Q1, is transacting at $45,287. Additionally, because Tesla is the brand with the majority market share, the drop in price for the Model 3 (down 7% year-over-year) and the introduction of the Model Y (priced at $54,000) has shifted the average transaction price of the segment as a whole. Lower prices for the Porsche Taycan also helped drive down average pricing in the segment.
Source: Kelley Blue Book