Demand for SUVs Drives Vehicle Prices to New Record in November
SANTA MONICA, Calif., Dec. 1, 2017 /PRNewswire/ -- The average transaction price of a new vehicle topped last month's record and hit a new all-time high of $35,852 in November, according to the analysts at Edmunds, the leading car shopping and information platform. This is a 2.3 percent increase compared to November of 2016 and a 12.1 percent increase compared to November of 2012. The average down payment on a new car, $3,906, also reached near-record territory in November. This is up $290 compared to November of 2016 and $284 from five years ago.
"2017 has been the year of the SUV," said Jeremy Acevedo, manager of industry analysis at Edmunds. "Consumers have proven time and time again this year that they're not afraid of the bigger price tags, higher APRs and longer loan terms."
Shoppers who are feeling a bit more cautious and seeking a bargain can still likely find a great one on an outgoing 2017 model year vehicle. In November, 57 percent of new vehicles sold were 2017 model year, while last November, 49 percent of new vehicles sold were 2016 model year. Five years ago, only 41 percent of the new vehicles sold in November were from the 2012 model year. Even though early estimates show incentives dropped in November for the first time in two months, they're still at historically high levels. Incentives are expected to average $3,371 in November, compared to the record $3,557 in October.
"While incentives are starting to level off, automakers are still finding themselves with significant inventory to clear out before the end of the year," Acevedo said. "In a declining market, every sale counts and dealers are going to be very motivated to meet their year-end goals."
More insight into recent auto industry trends can be found in the Edmunds Industry Center at http://www.edmunds.com/industry-center/.
New-Car Finance Data
November 2017 November 2016 November 2012
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Term 69.26 68.77 65.17
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Monthly
Payment $524 $518 $471
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Amount
Financed $31,433 $31,022 $27,126
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APR 4.81 4.53 4.09
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Down Payment $3,906 $3,616 $3,622
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Used-Car Finance Data
November 2017 November 2016 November 2012
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Term 67.06 66.86 63.60
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Monthly
Payment $389 $382 $363
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Amount
Financed $21,494 $21,269 $19,127
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APR 7.66 7.36 7.83
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Down Payment $2,475 $2,345 $2,181
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About Edmunds
Edmunds is the leading car information and shopping platform, helping millions of visitors each month find their perfect car. With products such as Edmunds Your Price, Your Lease and Used+, shoppers can buy smarter with instant, upfront prices for cars and trucks currently for sale at more than 13,000 dealer franchises across the U.S. Edmunds' in-house team of unbiased car-shopping experts provide industry-leading vehicle reviews and shopping tips, and the company also has a 20-year-old forums community of car shoppers and enthusiasts, where members can get shopping advice and learn what others are buying and leasing cars for. The company is regarded as one of America's best workplaces by Fortune and Great Place to Work. Edmunds is based in Santa Monica, California, and has a satellite office in downtown Detroit, Michigan.
CONTACT:
Talia James
Public Relations Manager
PR@Edmunds.com
310-309-4900
http://edmunds.com/about/press
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SOURCE Edmunds
