Sales incentives were up 136% year over year in November, indicating the new-vehicle market is shifting to a buyer’s market, not a seller’s market.
Compared to the start of the year, transaction prices for new vehicles are down 1.7%, or $865, the largest January to June tumble in the past decade.
Average transaction prices (ATP) have been above the average manufacturer’s suggested retail price (MSRP) for more than a year.
The luxury vehicle share sold increased to above 18% of total sales, lifting overall industry ATP, while non-luxury vehicle buyers on average paid more than $500 above sticker price.
But average transaction prices still linger above MSRP as supply holds steady at the same level since Thanksgiving and customer demand remains strong.
The average price paid for a new non-luxury vehicle in December 2021 was $43,072, slightly down from the record high set in November but still $900+ over sticker.
The website iSeeCars compiled a list of top 10 vehicles with the highest rate of entering the used market one year after being purchased as new. Of those top 10, eight were luxury vehicles.
Given the scope of Hurricanes Harvey and Irma, news about the natural disaster and the effect that it had on the used car market held several top spots on the list of top articles of the year.
As manufacturers continue to release new vehicles into the luxury segment, the number of vehicles in the segment has grown. This along with overproduction and higher incentives has led to higher depreciation rates for the segment.
Luxury vehicles continued to struggle last week, as the segment realized some of the highest depreciation rates among all segments, according to Black Book’s Feb. 13 Market Insights report.
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