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U.S. New Car Prices Jump 4 Per Cent

Average new car prices in the U.S. rose nearly 4 per cent in January 2018 compared to the same period last year, according to the analysts at Kelley Blue Book.

"January was a strong month for transaction prices, rising nearly 4 percent on average," said Tim Fleming, analyst for Kelley Blue Book. "The shifting sales mix to trucks and SUVs has been particularly extreme lately, and as volume shifts away from cars, the average vehicle price ticks up."

Fleming adds that there is a "glimmer of hope" in the mid-size car segment, where prices jumped 3 per cent in January thanks in large part to the latest generation of the Toyota Camry and Honda Accord. "These well-received new models, along with the redesign of the Nissan Altima due later this year, will test how much demand still exists for sedans."

Volkswagen and Honda experience the greatest year-over-year percentage change in January, with 5.6 per cent and 4.3 per cent increases respectively. General Motors was not far behind with a 4.1 per cent boost thanks in large part to the GMC brand, and Fiat Chrysler was close by with a 3.7 per cent average increase helped by a strong mix of RAM trucks and Jeep SUVs, according to KBB.com.

Hyundai and Kia experienced a 3.3 per cent increase and Toyota managed a 3.0 per cent jump in average transaction prices.

New car prices for nearly all manufacturers, with the exception of Subaru, took a slight dive in January from December 2017. The overall price dropped $486 or 1.3 per cent from last month.

BY: Canadianautodealer.ca