KBB: New-Vehicle Transaction Prices Rise Nearly 3% in May
Transaction prices continued to climb at a steady rate in May, driven by the weakening sales mix of cars, according to the vehicle information side.

IRVINE, Calif. — Transaction prices continue to climb in May, with the average climbing $847 from a year ago to $33,261. The increase was the weakening sales mix of cars, which fell from 41% in the year-ago period to 38%, Kelley Blue Book reported today.
“Compact SUVs, the most popular segment in terms of sales, saw an increase of 2% year over year and clearly remain in very high demand,” noted Kelley Blue Book analyst Tim Fleming. “There are signs, however, of discounts in SUV segments that are growing quickly, including subcompact and luxury SUVs, which are likely helping to fuel those segments’ double-digit sales growth this year.”
Ford Motor Co.’s 5% increase in its average transaction prices was boosted by its F-Series’ 3% increase. The refreshed Fusion also saw one of the strongest gains in the weakening mid-size car segment at 3%. Meanwhile, the Lincoln brand was flat, although the MKC crossover fell 4%.
Volkswagen Group’s average transaction prices grew nearly 4%, as the Volkswagen brand climbed 5% due, in part, to the resumed sale of model-year 2015 diesel vehicles. The Audi brand was flat, though the redesigned A4 all-road soared 9%.
Originally posted on F&I and Showroom
More Dealer Ops

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
Timing the Market Can Hurt Long-Term Program Performance
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
IA American Appoints Two Execs
Senior vice presidents of the company's agent and dealer channels chosen to support general agents and help auto dealers with sales and performance.
Read More →
Cox Automotive Acquires Inspection Firm
Full ownership of Alliance Inspection Management, or AiM, meant to unlock growth for Manheim inspection capabilities
Read More →
Assurant Expands Partnership With Holman
Extended collaboration delivers training, products and performance development to 30 newly acquired Holman dealerships
Read More →
Franchises, Throughput Down in First Half
A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.
Read More →