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Average New-Vehicle Prices Up 4% Year-Over-Year in May 2020, According to Kelley Blue Book

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The valuation analysts at Kelley Blue Book today reported the estimated average transaction price for a light vehicle in the United States was $38,940 in May 2020. New-vehicle prices increased $1,618 (up 4.3%) from May 2019, while prices dropped $244 (down 0.6%) from last month.

“Though new-car sales will be down significantly for the third month in a row, due to the COVID-19 pandemic, average transaction prices have actually strengthened over this period for several reasons,” said Tim Fleming, analyst for Kelley Blue Book. “Incentives, deferred payments, and low APR deals are helping consumers stretch out their monthly payments over longer terms. Inventory levels have tightened as the economic recovery has begun, but little new supply has arrived yet from the factories that restarted in May. Finally, the share of pickup trucks has spiked recently, reaching an all-time high in April.”

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