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New car prices increased by 3% in June in the US

COVID-19 coronavirus pandemic continues to impact the economy, but nonetheless, the average price of new vehicles purchased this June increased to $38,530, representing a boost of over three percent compared to a year ago, according to experts at Kelley Blue Book.

While sales across the three months ending in June are projected to be decreasing 35 percent because of the coronavirus crisis and the “ensuing economic recession,” sale prices have strengthed more than normal, according to analyst Tim Fleming.

“The industry average increased 3 percent – because of the increases in non-luxury cars – and light truck sales mix at around 75 percent of the total market,” he said. “Today’s new-car buyers are likely more financially secure despite the economic uncertainty, and they are buying a disproportionate number of trucks and SUVs.”

The average transaction price (ATP) of vehicles made by Nissan North America, which consists of the Nissan and Infiniti brands, increased the most in June, increasing 8.5 percent from the same period last year, Kelley Blue Book noted.

The ATP of the manufacturer’s redesigned Versa increased 15 percent and the Sentra increased 7 percent. Nissan’s mid-size Frontier increased by over 4 percent. The automaker’s top seller, the Rogue, saw a boost of 1.5 percent — it will be replaced with a new generation later on in 2020.

Analysts cautioned that these elevated costs are likely to remain throughout the summer months because of the coronavirus led plant shutdowns in the past months and the slow supply chain ramp-ups that followed, together with the recent resurgence in used car values.

Although buyers are visiting dealerships, they are still not ready for the luxury brands, which saw a 1.5 percent decline in prices, Fleming said.

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