IRVINE, Calif: The analysts at Kelley Blue Book today reported the estimated average transaction price (ATP) for light vehicles in the United States was USD 36,113 in December 2017.
New-car prices have increased by $583 (up 1.6 percent) from December 2016, while climbing 66 (up 0.2 percent) from last month.
"Average transaction prices closed the year on a strong note, rising nearly 2 percent in December 2017 to set a record high," said Tim Fleming, analyst for Kelley Blue Book. "Incentive spending was a concern in 2017, averaging 10.4 percent of MSRP, but encouragingly, this figure held relatively flat over the final quarter of the year. In 2018, interest rate hikes could be another concern, as they threaten to increase monthly payments for consumers; however, Kelley Blue Book anticipates they will help contribute to another down year of new-vehicle sales more than impact prices, which have steadily risen along with the economy since the recession."
Transaction prices for all of 2017 also finished 2 percent higher than last year, slightly slower growth than 2015 and 2016, which was at 2.5 percent.
