New Car Prices Rise An Anemic 0.6% Year-Over-Year In September As Retail Demand Weakens

A Tuesday report from valuation analysts at Kelley Blue Book is a testament to the lukewarm showing of the auto market.

Average new vehicle prices increased merely $262, or 0.6% year-over-year, in September, the publication said. The month-over-month performance revealed an increase of a similar magnitude.

"Transaction prices are still strong, but the growth has almost stalled, as retail demand is weakening," said Tim Fleming, analyst for Kelley Blue Book.

Automakers have scaled back production to keep supply in tune with demand, but this hasn't occurred fast enough, Fleming said. 

Incentives are surging higher, and they account for about 10.5% of average transaction prices, according to Kelley Blue Book said. Incentives are approaching 2017 levels, the publication said. 

On a positive note, Fleming said SUVs and trucks are faring better and so are recent model launches, both of which are positively impacting sales and average prices.

Most automakers saw year-over-year increases in sales, except for American Honda Motor Co Ltd HMC and Nissan Motor Co Ltd NSANY North America.

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