Market Overview

New Car Prices Rise An Anemic 0.6% Year-Over-Year In September As Retail Demand Weakens

Share:
New Car Prices Rise An Anemic 0.6% Year-Over-Year In September As Retail Demand Weakens

A Tuesday report from valuation analysts at Kelley Blue Book is a testament to the lukewarm showing of the auto market.

Average new vehicle prices increased merely $262, or 0.6% year-over-year, in September, the publication said. The month-over-month performance revealed an increase of a similar magnitude.

"Transaction prices are still strong, but the growth has almost stalled, as retail demand is weakening," said Tim Fleming, analyst for Kelley Blue Book.

Automakers have scaled back production to keep supply in tune with demand, but this hasn't occurred fast enough, Fleming said. 

Incentives are surging higher, and they account for about 10.5% of average transaction prices, according to Kelley Blue Book said. Incentives are approaching 2017 levels, the publication said. 

On a positive note, Fleming said SUVs and trucks are faring better and so are recent model launches, both of which are positively impacting sales and average prices.

Most automakers saw year-over-year increases in sales, except for American Honda Motor Co Ltd (NYSE: HMC) and Nissan Motor Co Ltd (OTC: NSANY) North America.

Related Links:

Tesla Analyst: September Rally In Deliveries Could Help Automaker Meet Street Expectations

Analyst: US-Japan Trade Talks Positive for Japanese Automakers If Additional Tariffs Avoided

Posted-In: auto sales Kelley Blue BookNews Retail Sales Trading Ideas Best of Benzinga

 

Related Articles (F + GM)

View Comments and Join the Discussion!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Why It Might Be Time For This Obscure Geared ETF

Mike Khouw Sees Unusual Activity In Agnico Eagle Mines