Kelley Blue Book recently released a very interesting report about the average transaction prices for a light vehicle in the U.S. for the month of May 2021.
The industry-wide average (excluding applied consumer incentives) is $41,263 (new record), which is $2,125 or 5.4% more than a year ago ($39,138) and $493 or 1.2% more compared to April. It means that the prices of new cars noticeably increased. In the case of some automotive groups, it was more than 10% year-over-year.
As we can see in the table below, only Tesla noted a significant reduction in average transaction prices (down $5,057 or 8.8% year-over-year to $52,560 from $57,617). However, we actually saw that Tesla is noticeably increasing prices for the Model 3 and Model Y every couple of weeks.
Why would the brand's average go down then? The reason must be the absence of Model S and Model X this year (Model S was launched in late June). Excluding Model S/Model X we would probably see an increase in average transaction price as well.
The average transaction price for electric cars in May amounted to $52,486, which is $6,377 or 10.8% less than a year ago ($58,863).
It must have something to do with Tesla, which is the largest manufacturer in the segment, but probably also other manufacturer contributed to the result by introducing and selling more cars with a lower price tag.
In the case of the Hybrid/Alternative Energy Car category, the average transaction price was $30,875, which is $2,645 or 9.4% more than a year ago ($28,230).
One thing that we would like to point out is that the average for EVs is noticeably higher than the industry average. In May 2021, the average for EVs was $11,223 or 27% higher, however, in May 2020, the difference was $19,725 or 50%!