In a trend made ironic in March as gas prices surged, Americans scooped up full-size SUVs and pickups to make four straight months of annual new-vehicle price gains.
Cox Automotive noted about a 4% average transaction price bump in the midst of the U.S.-Israel war in the Middle East to $49,275. It said the ATP was essentially flat month-over-month, though the sales pace increased 18% from February due to elevated incentives.
Though the war started on Feb. 28, almost immediately sending gas prices to new heights, the March compact and subcompact sales share fell as SUV and truck deliveries headed in the other direction, Cox reported.
“Buying behavior does not change quickly, and most Americans have ridden the gas-price rollercoaster before. They know where the ride ends,” said Cox Executive Analyst Erin Keating.
“The numbers this month also show that the industry’s near-$50,000 ATP is reflective of a market that favors large, expensive vehicles. While affordable vehicles still exist, the demand continues to be concentrated in higher-priced segments.”
The manufacturer’s suggested retail price rose about 4% year-over-year to $51,456, its 12th straight month eclipsing $50,000. Incentives, which inched up from 6.9% of the ATP in February to 7.2%, helped fuel sales.
Electric-vehicle prices continued their fall in March after the Oct. 1 end of federal purchase and lease incentives, their ATP down about 3% year-over-year to $54,508 as they close in on gas models in price parity.
The war could bring a reversal of the EV sales decline following the pullback of adoption support, though, as demand increased in most European countries, as well as in India and New Zealand, after the war started, according to data provider Benchmark Mineral Intelligence.
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