Utility vehicles and pickups played a large part in driving up the average transaction price for a new vehicle to $35,635 in May, a 3.4% increase over the same time last year, according to Kelley Blue Book.
Luxury SUVs in particular, saw healthy boosts to average transaction prices through the month. Compared to the year ago period, luxury full size SUVs and crossovers experienced an 8.6% increase to average transaction price, the highest among all vehicles.
Full-size pickup and mid-size pickup transaction prices were up 3.8% and 3.6%, respectively.
Average transaction prices rose a healthy 3 percent this month and remain strong even as new-vehicle demand is expected to falter in 2018," said Tim Fleming, analyst for Kelley Blue Book. "It's no surprise prices were helped by SUV demand, but pickup trucks played a big role in May's increases as well.
Looking at each manufacturer’s performance, Ford Motor Co., General Motors, and Volkswagen Group experienced the biggest growth to average transaction price, growing 4.6%, 3.9%, and 7.1%, respectively.