Latest news with #ErinKeating
Yahoo
13-06-2025
- Automotive
- Yahoo
The Shocking Truth About New Car Prices Right Now
The Shocking Truth About New Car Prices Right Now originally appeared on Autoblog. Kelley Blue Book data drawn from auto dealerships has reflected that new car prices remained steady in May despite some manufacturers raising costs due to tariffs. Additionally, new electric vehicle (EV) sales were mixed by brand, even with significantly more incentives. The average manufacturer's suggested retail price (MSRP) for a new car in May was $50,968—a slight increase from April but the highest figure in 2025 so far and a 2.1% year-over-year increase. December 2024 saw MSRPs peak at $51,990. New-vehicle Average Transaction Prices (ATP) were almost identical to April's $48,811 at $48,799 and have increased by 1% compared to last year. ATP on compact and mid-size SUV segments remained largely the same, and with the pre-tariff shopping rush winding down, dealership sales dropped to 15.6 million compared to April's 17.3 million. Sports cars, luxury cars, and luxury subcompact SUVs had the most significant price increases in May, whereas costs for popular small/mid-size pickup trucks rose 0.9% month-over-month, reaching $42,062. Incentives were the least clear trend within May's new vehicle sales data. New car incentives increased slightly from 6.7% of ATP to 6.8% ($3,297)—the same amount as May's year-over-year rise. However, several automakers lowered incentive spending last month, including Volkswagen, Mazda, Land Rover, Volvo, BMW, Chrysler, Jeep, and Ram. Still, a few manufacturers, such as Tesla, Toyota, and Nissan, vastly increased May incentive spending, with Toyota's rising by 20%. While Toyota's incentive spending increase is notable, its 4.1% of ATP remains below the industry's 6.8% incentive rate in May. Compact and mid-size SUV segments were among the classes with the least changed incentives, but the average EV incentive package increased from 11.6% month-over-month to 14.2% of ATP ($8,225), marking the highest level since 2018. Tesla ATP declined 1.5% to $55,277. May was General Motors' second-best month ever for EV sales, and Hyundai's electric Ioniq 6 sedan saw a 9% year-over-year delivery increase. Automakers like Ford had their May EV sales decline by 25%. 'While tariff policy is adding uncertainty to the new-vehicle market, prices are holding remarkably steady, a reminder that auto industry change is often slow. Many automakers are keeping true to a promise to hold the line on pricing, at least in the near term. We are still expecting prices to move higher through the summer as the inflationary impact of tariffs begins to hit. Right now, we believe dealer profitability is being squeezed, as costs on many products are going up, but raising retail prices in this environment is a real challenge,' said Erin Keating, Executive Analyst at Cox Automotive. U.S. consumers rushed to dealerships in March and April, hoping to beat tariff price adjustments, but even in May, shoppers could still acquire comparable deals. Automakers like Ford have extended their employee pricing promotion through the 4th of July weekend, and Tesla ATP has declined 1.5%. Some consumers realized they had time to beat tariff pricing, as dealership sales were up 1.4% year-over-year in May despite a slowing sales pace, according to MarkLines data. Still, CBT News notes that U.S. auto imports fell 72% in May, so while dramatic price increases won't happen as quickly as some might have imagined, it could become harder for drivers to find the exact model and trim they want. The Shocking Truth About New Car Prices Right Now first appeared on Autoblog on Jun 12, 2025 This story was originally reported by Autoblog on Jun 12, 2025, where it first appeared.
Miami Herald
12-06-2025
- Automotive
- Miami Herald
The Shocking Truth About New Car Prices Right Now
Kelley Blue Book data drawn from auto dealerships has reflected that new car prices remained steady in May despite some manufacturers raising costs due to tariffs. Additionally, new electric vehicle (EV) sales were mixed by brand, even with significantly more incentives. The average manufacturer's suggested retail price (MSRP) for a new car in May was $50,968-a slight increase from April but the highest figure in 2025 so far and a 2.1% year-over-year increase. December 2024 saw MSRPs peak at $51,990. New-vehicle Average Transaction Prices (ATP) were almost identical to April's $48,811 at $48,799 and have increased by 1% compared to last year. ATP on compact and mid-size SUV segments remained largely the same, and with the pre-tariff shopping rush winding down, dealership sales dropped to 15.6 million compared to April's 17.3 million. Sports cars, luxury cars, and luxury subcompact SUVs had the most significant price increases in May, whereas costs for popular small/mid-size pickup trucks rose 0.9% month-over-month, reaching $42,062. Incentives were the least clear trend within May's new vehicle sales data. New car incentives increased slightly from 6.7% of ATP to 6.8% ($3,297)-the same amount as May's year-over-year rise. However, several automakers lowered incentive spending last month, including Volkswagen, Mazda, Land Rover, Volvo, BMW, Chrysler, Jeep, and Ram. Still, a few manufacturers, such as Tesla, Toyota, and Nissan, vastly increased May incentive spending, with Toyota's rising by 20%. While Toyota's incentive spending increase is notable, its 4.1% of ATP remains below the industry's 6.8% incentive rate in May. Compact and mid-size SUV segments were among the classes with the least changed incentives, but the average EV incentive package increased from 11.6% month-over-month to 14.2% of ATP ($8,225), marking the highest level since 2018. Tesla ATP declined 1.5% to $55,277. May was General Motors' second-best month ever for EV sales, and Hyundai's electric Ioniq 6 sedan saw a 9% year-over-year delivery increase. Automakers like Ford had their May EV sales decline by 25%. "While tariff policy is adding uncertainty to the new-vehicle market, prices are holding remarkably steady, a reminder that auto industry change is often slow. Many automakers are keeping true to a promise to hold the line on pricing, at least in the near term. We are still expecting prices to move higher through the summer as the inflationary impact of tariffs begins to hit. Right now, we believe dealer profitability is being squeezed, as costs on many products are going up, but raising retail prices in this environment is a real challenge," said Erin Keating, Executive Analyst at Cox Automotive. U.S. consumers rushed to dealerships in March and April, hoping to beat tariff price adjustments, but even in May, shoppers could still acquire comparable deals. Automakers like Ford have extended their employee pricing promotion through the 4th of July weekend, and Tesla ATP has declined 1.5%. Some consumers realized they had time to beat tariff pricing, as dealership sales were up 1.4% year-over-year in May despite a slowing sales pace, according to MarkLines data. Still, CBT News notes that U.S. auto imports fell 72% in May, so while dramatic price increases won't happen as quickly as some might have imagined, it could become harder for drivers to find the exact model and trim they want. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
The Sun
13-05-2025
- Automotive
- The Sun
US car prices higher in April after tariffs hit
DETROIT: U.S. new-vehicle prices surged in April, data released on Monday showed, a sign that the effects of President Donald Trump's auto-tariff measures are rippling through the car market. The average price consumers paid, after discounts and promotions, rose 2.5% from March, more than double the typical 1.1% increase over those two months in recent years, Cox Automotive's Kelley Blue Book showed. In the past decade, the only larger such increase was in April 2020, when prices rose 2.7% during pandemic-related factory shutdowns. Automakers are adjusting to 25% U.S. tariffs on vehicle imports from many countries, including major trading partners Mexico and Canada, but few have raised sticker prices. Some, like Hyundai ( Ford (F.N) and Jeep-maker Stellantis ( have even rolled out deals to reassure buyers and keep sales flowing. Still, consumer demand has risen over the past few months as buyers rush to get ahead of any tariff-related price increases, dealers and auto executives have said. That has translated into new-car shoppers shelling out more on average at dealerships, according to Cox. Yet even if carmakers hold prices steady, consumer expectations that tariffs will eventually send prices higher likely led to inflation on certain models, said Cox executive analyst Erin Keating. 'Those models got more demand, and therefore the local pricing dynamics at the dealership level likely helped those prices go higher.' Ford is charging more for its Mexico-built products, Reuters first reported last week. Some models of the Mustang Mach-E electric SUV, Maverick pickup and Bronco Sport will cost as much as $2,000 more, according to a notice sent to dealers. Wholesale used-vehicle prices rose in April, according to Cox's Manheim Used Vehicle Value Index, which increased 4.9% to 208.2 from a year ago, up 2.7% from March. Promotions have kept prices steady overall, some automakers said. Consumer-incentive programs are still very strong, said Todd Szott, dealer partner at Szott Automotive Group, which has Ford, Stellantis and Toyota dealerships in Metro Detroit. 'Pricing is fairly stable at this point.' Sales incentives on new cars as a percentage of transaction prices, a measure of discounts and promotions, fell to the lowest since the summer of 2024, Cox said. A dip in the number of vehicles sitting on dealer lots could point to upward pressure on prices in coming months. On a recent webinar with the Automotive Press Association, Cox Chief Economist Jonathan Smoke noted that fewer than 2.6 million vehicles are on dealer lots, and that supply could fall even further as sales surge and importers reduce deliveries. Paul Zimmermann, partner-owner at Matick Automotive Group of Michigan, which owns GM and Toyota stores, said vehicle stocks are getting lighter in some areas after a robust April. 'I do have some concerns just in terms of the pipeline,' he said. 'It's running healthy right now, but we need to make sure that there's no blip.' Cox previously estimated new vehicles directly affected by a 25% tariff could cost 10% to 15% more, while the prices on vehicles not affected by the full tariff could rise 5%. Keating does not expect double-digit percentages soon, but maybe over the long term. Automakers may use model-year changeover time in the summer to adjust prices, she added.
Yahoo
12-05-2025
- Automotive
- Yahoo
Kelley Blue Book Report: As Tariff Talk Clouds the Market, New-Vehicle Prices Jump Higher by 2.5% in April
ATLANTA, May 12, 2025 /PRNewswire/ -- The monthly new-vehicle average transaction price (ATP) report from Cox Automotive's Kelley Blue Book was released today. Key takeaways from the April report include: New-vehicle ATP increased in April to $48,699. The month-over-month ATP increase of 2.5% was sharp, as April typically delivers a monthly increase of 1.1%. In the past decade, only April 2020 produced a larger month-over-month increase, at 2.7%. New-vehicle prices in April were higher year over year by 1.1%, an increase below long-term averages but higher than in recent months. According to Kelley Blue Book estimates, over the long term, new-vehicle prices typically rise more than 3% year over year. Since April 2023, however, as new-vehicle inventory recovered from the COVID-era shortage, new-vehicle prices have been mostly flat year over year. The new-vehicle sales pace in April was 17.3 million. The sales pace was lower than March but the strongest April since 2021. Amid the buying frenzy, new-vehicle sales incentives fell to 6.7% of ATP, down from 7.0% in March and at the lowest point since the summer of 2024. Prior to April, the six-month average was 7.4% of ATP. The Compact SUV segment, one of the most popular segments and one highly exposed to new import tariffs, saw vehicle prices that were mostly flat month over month and year over year at $36,416. Incentives and discounts, however, declined in April to 7.8% of ATP, down from 8.2% in March. Since April 2024, incentives in the Compact SUV segment have averaged 9.1% of ATP. Similarly, in the Subcompact SUV segment, April transaction prices held mostly steady month over month, but incentives also declined. Among core volume brands, the results in April were mixed. Audi, Land Rover and Volvo saw higher ATPs and lower incentives compared to March. Three General Motors brands – Cadillac, Chevrolet and GMC – also posted higher ATPs, with little change to incentives. On the other hand, Buick saw lower prices and higher incentives in April. Acura and BMW also held prices lower and increased incentive spending compared to March. Sales of Porsche and Land Rover models accelerated in April, as both brands face higher future costs since 100% of their respective vehicles are imported. ATPs for Porsche led the industry last month at above $114,000, with Land Rover just behind at $113,000. April was the best sales month in 2025 for both brands, pushing the overall industry ATP higher. In April, Ford advertised heavily on a message of "holding prices steady" and celebrated its "built in America" leadership. And Ford brand prices and incentives in April were mostly unchanged compared to March, according to Kelley Blue Book data. One standout: The popular, Mexico-built Maverick pickup truck saw lower prices in April, and incentive spending increased to an all-time high of 6.6% of ATP. Sales were strong: A record 20,183 were sold in April. Quote from Erin Keating, Executive Analyst, Cox Automotive "Ever since President Trump announced auto tariffs 47 days ago, the cost of new cars has been steadily climbing. Even though there was a surge in shopping and sales early on, the manufacturer's suggested retail prices haven't budged. The pricing landscape is varied depending on the automaker, car segment and specific models – some are cutting incentives, others are in high demand, and the supply isn't evenly distributed across the board." Electric Vehicle Prices Reach Highest Point of Year in April, Incentive Decline Further The Kelley Blue Book team initially estimates new EV prices in April to be $59,255, higher year over year by 3.7% and higher than March by 0.2%. The March EV ATP was revised lower to $59,132. EV incentives declined for the second consecutive month in April, dropping to 11.6% of ATP. EV incentives peaked in November 2024 at 13.9% of ATP. In May, market-leader Tesla sold more than 45,000 EVs, the brand's best month of 2025, thanks mostly to sales of the freshened Model Y. Tesla's average ATP increased month over month and year over year in April, reaching $56,120, even though Cybertruck, at one point the best-selling product transacting over $100,000, had an ATP of $89,247. Sales of Cybertruck fell below 2,000 units for the first time in a year. New EV sales were lower month over month by nearly 6%, according to initial estimates from Kelley Blue Book. Year-to-date EV sales in 2025 are higher by 5.4%. (Look for an update on new- and used-EV sales later this month when the Cox Automotive EV Market Monitor is published.) Data tables are available for download. About Kelley Blue Book Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry for nearly a century. As the industry standard for generations, Kelley Blue Book provides transparent, objective information and data-driven, innovative tools for consumers, automotive dealers and manufacturers. Kelley Blue Book publishes millions of market-reflective values weekly on its top-rated website from its famous Blue Book® Trade-In Values to the Kelley Blue Book® Price Advisor tool, which offers a range for what consumers reasonably can expect to pay for a vehicle in their area. editors rate and review hundreds of new vehicles each year to help consumers understand the Best Cars and Best SUVs to meet their needs. Kelley Blue BookSM Instant Cash Offer provides a redeemable trade-in offer to transaction-ready consumers and conveniently connects them to local participating dealers. Kelley Blue Book's Service Advisor provides guidance on how much to pay for service and repairs, allowing consumers to schedule service with local dealers on Kelley Blue Book also provides vehicle values to finance and insurance companies as well as governmental agencies. Kelley Blue Book is a Cox Automotive brand. About Cox AutomotiveCox Automotive is the world's largest automotive services and technology provider. Fueled by the largest breadth of first-party data fed by 2.3 billion online interactions a year, Cox Automotive tailors leading solutions for car shoppers, auto manufacturers, dealers, lenders and fleets. The company has 29,000+ employees on five continents and a portfolio of industry-leading brands that include Autotrader®, Kelley Blue Book®, Manheim®, vAuto®, Dealertrack®, NextGear Capital™, CentralDispatch® and FleetNet America®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately owned, Atlanta-based company with $23 billion in annual revenue. Visit or connect via @CoxAutomotive on X, CoxAutoInc on Facebook or Cox-Automotive-Inc on LinkedIn. View original content to download multimedia: SOURCE Kelley Blue Book Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
11-04-2025
- Automotive
- Bloomberg
Bloomberg Hot Pursuit!: Auto Tariffs with Erin Keating
Cox Automotive's Erin Keating joins the podcast to talk tariffs. Plus, Hannah reports back on the Cadillac Celestiq and Matt rides the Buell.
