New-Car Transaction Prices Rise 2 Percent In July 2014, According To Kelley Blue Book

Domestic Truck, Utility Vehicles Driving Strength in Average Transaction Prices

IRVINE, Calif., Aug. 1, 2014 /PRNewswire/ -- The analysts at Kelley Blue Book www.kbb.com, the only vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry, today report the estimated average transaction price (ATP) for light vehicles in the United States was $32,556 in July 2014.  New-car prices have increased by $662 (up 2.1 percent) from July 2013, while dropping $41 (0.1 percent) from last month. 

"Overall, the industry continues to see average transaction prices rise at a solid pace," said Alec Gutierrez, senior analyst for Kelley Blue Book.  "Truck and utility vehicles are the major drivers behind this strength, especially among domestic automakers.  Increasing share of luxury vehicles also has played a role as sales in that segment have led the growth in the overall industry so far this year.  With consumer confidence on the rise in July, shoppers are clearly willing to spend a little extra on the vehicle they want."

Among the domestic manufacturers, Chrysler Group is up 3 percent in July 2014 with help from strong RAM pricing (up 7.7 percent year-over-year).  Chrysler brand also is up 5 percent on excellent Town & Country sales, as well as the recent launch of its 200 model, which is tracking 7.3 percent above this time last year. 

Ford Motor Company dipped slightly this month (down 0.6 percent) on slower sales of its F-150, in preparation for production of the next generation.  Similar to last month, General Motors' average transaction prices bumped up 3.6 percent almost entirely from its truck and full-size SUV lineup, which have all been redesigned in the past year.        

"While Chevrolet Silverado sales are down year-over-year, pricing continues to increase, up 8.5 percent in July," said Tim Fleming, analyst for Kelley Blue Book.  "Also helping bring up the manufacturer's transaction prices, sales of the new Chevrolet Tahoe are up, along with the model's transaction prices, rising 12.5 percent from last year."

For more information and news from Kelley Blue Book's KBB.com, visit www.kbb.com/media/, follow us on Twitter at www.twitter.com/kelleybluebook (or @kelleybluebook), like our page on Facebook at www.facebook.com/kbb, and get updates on Google+ at https://plus.google.com/+kbb.

About Kelley Blue Book (www.kbb.com)
Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the only vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry.  Each week the company provides the most market-reflective values in the industry on its top-rated website KBB.com, including its famous Blue Book® Trade-In and Suggested Retail Values, and Fair Purchase Price, which reports what others are paying for new cars this week.  The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies, and governmental agencies.  Kelley Blue Book's KBB.com ranked highest in its category for brand equity by the 2014 Harris Poll EquiTrend^® study and has been named Online Auto Shopping Brand of the Year for three consecutive years.  Kelley Blue Book Co., Inc. is a Cox Automotive company.

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SOURCE Kelley Blue Book

For further information: Chintan Talati, 949-267-4855, ctalati@kbb.com; Brenna Robinson, 949-267-4781, berobinson@kbb.com; Natalie Kumaratne, 949-267-4770, nkumaratne@kbb.com