Dive Brief:
- The United Auto Workers strike against the Detroit Three automakers did not significantly affect new car prices in October, according to a Kelley Blue Book report published Monday.
- The average transaction price for a new vehicle in the U.S. was $47,936 in October, increasing less than 1% month over month.
- Transaction prices rose significantly for some strike-affected brands as Chevrolet, Chrysler and Dodge slashed incentives. Ford, Jeep and Ram, meanwhile, saw their average transaction prices fall as those brands boosted incentives.
Dive Insight:
The Kelley Blue Book report found that the UAW strike only impacted only a handful of vehicles.
At the start of the month, the average listing price for a new vehicle was $166 higher than the end of October at $47,251, but still down 1.5% from a year ago.
In addition, the average listing price on dealer lots remained relatively stable through the month of October, as inventory levels rose, Cox reported last week. At the beginning of November, inventory levels were even higher than the start of October. The total supply of unsold new vehicles climbed 62% to 2.4 million units compared to last year.
Although electric vehicle production was not significantly impacted by the UAW strike, the average price of an electric vehicle in October reached $51,762, up from $50,326 in September. However, the average price of an EV is down more than $13,000 year over year, which can be attributed to Tesla’s aggressive price cuts this year to maintain its market share amid growing competition.
Still, Tesla transaction prices jumped by more than 5.2% in October, the first month-over-month price increase this year, according to Cox Automotive.
Cox noted the average price paid for a Tesla Model X SUV dropped by 23% year over year, which was the largest vehicle price decline among major automakers.
“New-vehicle prices in October were mostly unchanged from September,” said Rebecca Rydzewski, research manager at Cox Automotive. “The only big mover last month was Tesla, which continues to shift pricing at a surprising pace. In fact, the price shifts at Tesla in 2023 showcase just how dynamic pricing can be with a direct-to-consumer sales model.”
While average transaction prices of new vehicles in the U.S. is nearly $48,000, there are only three vehicle segments that had average transaction prices dip below $30,000 in October: compact cars, subcompact cars and subcompact SUVs/crossovers. Just two vehicles on the market in the U.S. are priced under $20,000 — the Kia Rio and Mitsubishi Mirage.
