Luxury Vehicle Sales Push December Average New-Car Prices Near Record Highs
New-vehicle prices surged in December 2024, with average transaction prices (ATPs) reaching $49,740, according to data from Cox Automotive’s Kelley Blue Book. This represents a 1.3% increase year-over-year and a 1.5% jump from November 2024. The rise was fueled by robust sales of high-priced and luxury vehicles.
“It was a December to remember, in terms of both sales volumes and prices,” said Erin Keating, executive analyst at Cox Automotive. “Consumer sentiment and confidence were on the rise, and vehicles — especially luxury ones — are emotional purchases. With favorable market conditions, it’s no surprise we saw increases in both prices and sales volumes.”
Surge in High-Priced Vehicle Sales
December is often a strong month for luxury vehicle sales, which contributes to higher ATPs. Approximately 5.6% of all new-vehicle sales last month, or 84,000 units, exceeded $80,000, a record for the industry. Popular models in this price bracket included the Land Rover Range Rover, Cadillac Escalade, BMW X7, GMC Yukon, and Tesla Cybertruck.
Full-size pickup trucks, averaging $64,261, also played a role in pushing ATPs upward, with a segment volume exceeding 223,000 units.
A Land Rover Range Rover, one of the luxury vehicles that saw high sales in December.
Brand-Specific Trends
Several brands experienced notable shifts in ATPs. Mitsubishi saw the most significant year-over-year decrease at 12%, while Buick and Volkswagen declined by 7% and 6%, respectively. Stellantis brands, including Chrysler, Dodge, Jeep, and Ram, also reported decreases as the automaker worked to manage elevated inventory levels.
Conversely, Cadillac and Tesla saw substantial price increases, with ATPs rising 13% and 10.5%, respectively. Infiniti also reported an 8.1% year-over-year increase, bringing its average transaction price to $65,667.
Electric Vehicles Drive Growth
The electric vehicle (EV) market also contributed to the rising ATPs. EV prices averaged $55,544 in December, up 0.8% year-over-year and 1.1% from the previous month. Sales incentives remained strong, averaging 14.3% of ATP, which equates to over $6,700 per sale. These incentives played a critical role in pushing EV sales past 1.3 million units in 2024, establishing a new annual record.
Incentives across all vehicle categories remained steady, at 8.0% of ATP in December, translating to roughly $3,958 per transaction. Entry-level luxury cars and compact SUVs offered the highest incentives, at 10% and 9.7% of ATP, respectively. Volkswagen, Ram, and Nissan led in incentive offerings, all exceeding 13% of ATP, while Toyota, Land Rover, and Porsche reported some of the lowest incentives in the industry.
As the industry transitions into 2025, consumer optimism and changing vehicle trends suggest that ATPs may continue to climb, particularly for luxury and EV segments.
