---
title: "Average Car Price Jumps Driven by SUV Sales"
description: "Average New Car Prices Jump Due to SUV Sales Strength"
date: "2018-04-06"
modified: "2018-04-06"
authors:
  - name: "Alejandra O'Connell-Domenech"
    link: "https://www.thedrive.com/authors/alejandra-oconnell-domenech"
url: "https://www.thedrive.com/news/19893/average-car-price-jumps-driven-by-suv-sales"
categories:
  - "Car Buying"
  - "News"
---

# Average Car Price Jumps Driven by SUV Sales

![](<https://www.thedrive.com/wp-content/uploads/images-by-url-td/content/2018/04/suv_prices.jpg>)
*\<em\>www.thedrive.com</em>*

Kelly Blue Book recently reported that the average price for vehicles in the United States has increased by 2 percent since March of 2017.

Mid-sized and full-sized [SUVs](<https://www.thedrive.com/new-cars/19901/2018-bmw-x2-review-with-this-crossover-the-evolution-of-the-suv-is-complete>) have contributed the most to the increase, according to the organization.

“Although fuel prices were up last month, [SUV](<https://www.thedrive.com/news/19919/study-the-cars-most-likely-to-reach-200000-miles>) sales remain strong and new models like the Chevrolet Traverse and Lincoln Navigator helped elevate their respective segments,” said Tim Fleming, an analyst for [Kelly Blue Book, in a written statement](<https://mediaroom.kbb.com/average-new-car-prices-jump-2-percent-march-2018-suv-sales-strength-according-to-kelley-blue-book>).

In March of last year, the average transaction price for a luxury full-sized SUV/Crossover, Luxury Mid-size SUV/Crossover and a full-size SUV/Crossover were $82,551, $55,260 and $60,437 respectively. In March of this year, prices for all three vehicle types increased to $87,734, $56,406, and $62,437.

According to the [*Euromonitor International*](<https://blog.euromonitor.com/2018/01/us-car-prices.html>), new and used car prices are continuing to rise in the U.S. despite a shrinking market. The average age of an on-road vehicle is 11.6 years which suggests that Americans are holding on to their cars longer than before. Meanwhile, lower barriers to lending and long-term loans are enabling consumers to buy vehicles.

Demand for [SUVs](<https://www.thedrive.com/news/19840/my-wedding-chariot-the-bentley-bentayga>) and pickup trucks has increased while sedans and coupes have become less popular. Besides a relatively strong economy and lower gas prices, the rise in popularity of larger vehicles has been linked to consumers interest in [subscription-based](<https://www.thedrive.com/news/19388/mercedes-benz-to-bring-subscription-based-vehicle-program-to-the-u-s-in-2018>) ownership. The idea of trading in a vehicle for a newer model does not seem as enticing as it once was. Car buyers are now more interested in paying monthly for a vehicle that they themselves can switch up.

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