Vehicle Prices Average $35.8K Financing for 69 mo due to More SUVs/CUVs

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Three major companies announced their figures to transaction prices of new cars and other information. Edmunds.com, ALG and Kelley Blue Book reported automotive sales. Edmunds.com shows an average transaction price of $35,852  while ALG reports $33,660 and Kelly Blue Book  reports $35,870. Financing averages close to 70 months for new vehicles.

Edmunds.com Data

The average transaction price of a new vehicle topped last month’s record and hit a new all-time high of $35,852 in November, according to the analysts at Edmunds, the leading car shopping and information platform. This is a 2.3 percent increase compared to November of 2016 and a 12.1 percent increase compared to November of 2012. The average down payment on a new car, $3,906, also reached near-record territory in November. This is up $290 compared to November of 2016 and $284 from five years ago.

 “2017 has been the year of the SUV,” said Jeremy Acevedo, manager of industry analysis at Edmunds. “Consumers have proven time and time again this year that they’re not afraid of the bigger price tags, higher APRs and longer loan terms.”

Shoppers who are feeling a bit more cautious and seeking a bargain can still likely find a great one on an outgoing 2017 model year vehicle. In November, 57 percent of new vehicles sold were 2017 model year, while last November, 49 percent of new vehicles sold were 2016 model year. Five years ago, only 41 percent of the new vehicles sold in November were from the 2012 model year. Even though early estimates show incentives dropped in November for the first time in two months, they’re still at historically high levels. Incentives are expected to average $3,371 in November, compared to the record $3,557 in October.

“While incentives are starting to level off, automakers are still finding themselves with significant inventory to clear out before the end of the year,” Acevedo said. “In a declining market, every sale counts and dealers are going to be very motivated to meet their year-end goals.”

ALG Price Data

ALG, the industry benchmark for determining the future resale value of a vehicle, projects U.S. revenue from new vehicle sales will reach $47 billion for the month of November, up 3.4 percent from a year ago.

ALG expects a gain of 1.5 billion in revenue for automakers versus November 2016. Additionally, incentive spending is projected to increase 4.6 percent.

 “Automakers continue to experience growing average transaction prices, fueling robust revenues from new vehicle sales,” said Eric Lyman, ALG’s chief industry analyst. “However, the continued use of elevated incentives creates a sobering tone to the celebration. The increase in incentives may also be an indication that vehicle replacement demand from Hurricane Harvey and Irma has largely been fulfilled.”

ALG estimates ATP for a new light vehicle was $33,660 in November, up 1.9 percent from a year ago. Average incentive spending per unit grew by $162 to $3,692. The ratio of incentive spending to ATP is expected to be 11 percent, up from 10.7 percent a year ago.

ALG Average Transaction Price (ATP)

Manufacturer

Nov. 2017
Forecast

Nov. 2016

Oct. 2017

YOY

MOM

BMW (BMW, Mini)

$52,376

$50,628

$53,516

3.5%

-2.1%

Daimler (Mercedes-Benz, Smart)

$62,261

$58,246

$62,468

6.9%

-0.3%

FCA (Chrysler, Dodge, Jeep, Ram, Fiat)

$34,193

$33,120

$33,608

3.2%

1.7%

Ford (Ford, Lincoln)

$36,494

$35,525

$36,183

2.7%

0.9%

GM (Buick, Cadillac, Chevrolet, GMC)

$37,521

$37,157

$37,381

1.0%

0.4%

Honda (Acura, Honda)

$27,812

$27,132

$27,544

2.5%

1.0%

Hyundai

$22,020

$22,713

$22,864

-3.0%

-3.7%

Kia

$21,621

$22,541

$21,914

-4.1%

-1.3%

Nissan (Nissan, Infiniti)

$27,861

$27,955

$27,145

-0.3%

2.6%

Subaru

$27,890

$28,335

$28,118

-1.6%

-0.8%

Toyota (Lexus, Scion, Toyota)

$32,246

$31,989

$32,042

0.8%

0.6%

Volkswagen (Audi, Porsche, Volkswagen)

$35,254

$33,575

$34,286

5.0%

2.8%

Industry

$33,660

$33,048

$33,395

1.9%

0.8%

New-Car Finance Data from Edmunds.com

November 2017

November 2016

November 2012

Term

69.26

68.77

65.17

Monthly Payment

$524

$518

$471

Amount Financed

$31,433

$31,022

$27,126

APR

4.81

4.53

4.09

Down Payment

$3,906

$3,616

$3,622

Used-Car Finance Data from Edmunds

November 2017

November 2016

November 2012

Term

67.06

66.86

63.60

Monthly Payment

$389

$382

$363

Amount Financed

$21,494

$21,269

$19,127

APR

7.66

7.36

7.83

Down Payment

$2,475

$2,345

$2,181

The analysts at Kelley Blue Book today reported the estimated average transaction price (ATP) for light vehicles in the United States was $35,870 in November 2017. New-car prices have increased by $554 (up 1.6 percent) from November 2016, while climbing $83 (up 0.2 percent) from last month.

“Transaction prices reached a new record high in November 2017,” said Tim Fleming, analyst for Kelley Blue Book. “Prices are being driven higher by the shifting sales mix away from cars, which now stands at just 34 percent and is trending downward. Kelley Blue Book continues to see much of the consumer demand geared toward small SUVs, which saw prices rise by 3 percent, in addition to strong sales growth. This segment features many recent redesigns, and shows no signs of weakness despite the overall down market for new vehicles.”

 

Manufacturer November

 2017

Transaction

Price (Avg.)*

 October

2017

Transaction

Price (Avg.)*

 November

2016

Transaction

Price (Avg.)*

 Percent

Change

October

2017 to

November

2017*

 Percent

Change

November

2016 to

November

2017*
(Acura, Honda) $28,011 $28,032 $27,592 -0.1% 1.5%
Fiat Chrysler $37,790 $38,022 $36,506 -0.6% 3.5%
(Ford, Lincoln) $40,423 $39,939 $39,312 1.2% 2.8%
GM $39,997 $40,242 $40,133 -0.6% -0.3%
Hyundai Kia $25,210 $25,096 $24,745 0.5% 1.9%
Nissan, Infiniti $29,177 $29,045 $29,652 0.5% -1.6%
Subaru $29,070 $28,904 $29,058 0.6% 0.0%
Lexus, Toyota $32,973 $32,526 $32,318 1.4% 2.0%
 (Audi, Volkswagen, Porsche) $41,790 $41,818 $39,424 -0.1% 6.0%
Industry $35,870 $35,787 $35,316 0.2% 1.6%