New-Vehicle Prices Increase 2% in July, KBB says
New-vehicle prices increased $749 year-over-year in July, while decreasing $473 from the previous month, and the average transaction price for light vehicles in the United States was $38,378.

The year-over-year increase from July of last year was 2% and, month-over-month, was down 1.2%, said KBB.
Photo: Eric Gandarilla
New-vehicle prices increased $749 year-over-year in July, while decreasing $473 from the previous month, and the average transaction price for light vehicles in the United States was $38,378, according to Kelley Blue Book (KBB).
The year-over-year increase from July of last year was 2% and, month-over-month, was down 1.2%, said KBB.
Noteworthy year-over-year price changes include full-size SUVs/crossovers experiencing a 4.8% increase over July last year. Compact SUVs/crossovers also experienced a 2.9% increase when compared to same time last year. Meanwhile, mid-size pickup truck prices were up 4% and mid-size SUV/crossover prices were up 4.7%. Also, hybrid/alternative energy cars were up 2% this year, though electric vehicle prices were down 1.9%.
"While up from last year, new-car transaction prices are finally starting to dip from last month," said Steve Lind, vice president of operations for Kelley Blue Book. "This could be a result of supply shortages of highly contented, more desirable vehicles, which may cause some consumers to select second-choice trims. Shoppers' aversion to luxury vehicles continues with prices down 1% from last month."
Non-luxury transaction prices are also up nearly 4% year-over-year, likely the result of high SUV and truck sales, according to KBB.
Supply and inventory will remain a challenge in high demand segments due to factory shutdowns in the spring and potential shutdowns before year-end, said KBB. Used-car prices are still at record-breaking levels, and in some segments, there are models coming close to new-car prices, including sports cars.
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