New car transaction prices rose again in February 2017, according to analysts at Kelley Blue Book. Prices jumped $757, or roughly 2.3 percent, compared to last year, said the firm, showing that shoppers are spending more money on average when they buy a new vehicle.
According to Kelley Blue Book, the average transaction price for a new vehicle in February was $34,352, besting last February’s $33,595. With that said, last month’s average new car transaction price was down slightly (just under 1 percent) compared to the average transaction price in January of $34,680.
The increased transaction price was especially high among luxury vehicles: the high-end luxury car segment was up 3.3 percent over last year, the entry-level luxury car segment jumped 3.4 percent, and the average transaction price for a high-performance car increased an impressive 8.4 percent compared to last February — to a whopping $103,044. Meanwhile, transaction prices saw their biggest drops among hybrid cars (down 4.7 percent) and electric vehicles (down 11.3 percent), likely a result of continually low gasoline prices.
Kelley Blue Book says that, in part, overall transaction prices are up due to a shift in demand away from cars and towards SUVs. Tim Fleming, an analyst for Kelley Blue Book, noted that “even though sales now appear to be slowing down in the industry, the boom in utility vehicles is managing to boost profits for many automakers.”
Ford Motor Company saw the highest increase in average new car transaction prices, with a jump of 6 percent compared to February 2016. Kelley Blue Book says this increase was largely fueled by strong sales of the brand’s F-Series pickup, likely including the pricey new Super Duty model.