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    Sunday, May 05, 2024

    Transaction prices for SUVs exceed cars despite higher fuel costs

    Americans continued to pay more for SUVs in the spring than they did for cars, according to an analysis by the auto value resource Kelley Blue Book. The company noted how the finding reflects a higher demand for SUVs and crossovers, even as prices at the pump have been steadily creeping up.

    The average price among all light vehicles sold in April was $35,411, down $99 from March but a year-over-year increase of $710. The analysis separated cars, SUVs, pickup trucks, and vans into 22 categories.

    Luxury full size SUVs and crossovers had the largest price increase, with the average transaction of $88,579 climbing 6.5 percent from April 2017. The average luxury compact SUV or crossover price rose 3.7 percent to $44,584, while the typical price for a full size SUV or crossover increased 3.2 percent to $62,488.

    Smaller SUVs and crossover had a smaller price increase. The average transaction price for a compact model was $28,732, up 1.6 percent from the previous year. Other prices included $56,369 for a luxury midsize model (up 1.4 percent), $38,224 for a standard midsize model (up 1.3 percent), and $24,540 for a subcompact model (up 1.3 percent).

    Those in the luxury market appeared to be gravitating more toward larger vehicles, as the average transaction price for a high-end luxury car fell 3.4 percent to $92,733. However, luxury car prices were still up 2 percent to $58,778 while entry-level luxury car prices increased 1.5 percent to $42,303.

    "Average transaction prices moved up another 2 percent in April, with most manufacturers reporting year-over-year increases," said Tim Fleming, a Kelley Blue Book analyst. "Although fuel prices rose for the second month in a row and are nearing a $3 national average, Kelley Blue Book saw greater price increases for SUV models than with cars. Luxury SUVs performed particularly well, as less price-sensitive buyers splurged for the latest models, such as the Lincoln Navigator (up 30 percent), Volvo XC60 (up 16 percent), and Infiniti QX50 (up 12 percent)."

    According to AAA, gas prices in the United States have hit their highest point in four years. The average price for a gallon of regular grade gasoline stood at $2.92 on June 11, with 15 states having an average of $3 or more. The Short-Term Energy Outlook of the U.S. Energy Information Administration currently anticipates that average gas prices will peak at $2.92 during the summer and $2.87 in the summer of 2019.

    However, rising prices had little effect on transaction prices for electric or hybrid vehicles. The typical electric vehicle sold in April went for $35,968, a year-over-year increase of 0.5 percent. Hybrid or alternative energy cars typically sold for $26,735, up 0.8 percent.

    Although midsize cars were not as popular as SUVs, their price gains still outpaced those for pickup trucks. The average vehicle in this segment sold for $25,846, up 2.3 percent from the previous year. The typical price for a full-size pickup increased 2.1 percent to $47,803, while midsize pickup prices increased 1.5 percent to $32,658.

    Minivan and subcompact car prices each rose by 0.5 percent from the previous year. The average minivan sold for $34,281, while the typical subcompact car went for $15,388.

    In addition to high-end luxury cars, four segments saw a year-over-year drop in their average transaction price. These included vans (down 1.1 percent to $34,788), full-size cars (down 0.7 percent to $34,445), compact cars (down 0.6 percent to $20,561), and sports cars (down 0.5 percent to $31,464). The average price for high performance cars stayed relatively flat at $95,690.

    The average transaction prices for Toyota and Volkswagen had the largest increases from the previous year at 3.2 percent and 3 percent, respectively. Fiat Chrysler—which includes the brands Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, and Ram—was the only one of nine automakers in the report with a decrease to its average transaction price, which fell 1.6 percent to $36,754.

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