Auto Prices Ride May Moderation
Flat ATPs and asking prices clocked in below long-term averages for the month, though some segments saw significant price gains, reported Cox Automotive.

Incentives in May were concentrated among luxury vehicles, plus electric models, pickups and compact cars.
Mercedes
New-vehicle buyers got a relative break in May as prices held and incentives rose, which may have contributed to a monthly sales increase.
Still, some vehicle segments saw price increases, reported Cox Automotive’s Kelley Blue Book.
The average transaction price was flat from April at $49,220, according to the report. Though that was up 1% from last May, the year-over-year increase was the slightest so far this year and under the long-term May average of 3.5%.
Meanwhile, the average asking price was also essentially flat at $51,595, up about 2% year-over-year and under the long-term average of 3%.
The month-over-month flattening is typical for May, Cox said, citing an average 0.4% dip.
Some segments, though, actually posted record price increases, 3% for compact SUVs and 4% for subcompact SUVs.
Both supply and demand and brands’ product cycles are factoring into vehicle prices, said Cox Executive Analyst Erin Keating.
“Redesigned SUVs from Toyota, Kia, Jeep, and Hyundai are commanding higher prices out of the gate, while Ford’s F-Series production constraints are tightening truck inventory, lifting average transaction prices, with freshened Ram pickup stepping in to capture buyers at the premium end,” she said.
Incentives rose slightly in May from 6.8% of the average transaction price last year to 7.1% and were concentrated among electric models, luxury vehicles, compact cars and full-size pickups. That continued a two-year trend of incentive spending averaging about 7% of ATP, Cox said.
Originally posted on F&I and Showroom
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