The average price of new GMC models is on the rise and quickly pushing the brand into the luxury segment.
Data from GM Financial has revealed that GMC’s average transaction price jumped to $62,367 in the first quarter of this year, up from the average of $59,031 last year. According to vice president of global Buick and GMC, Duncan Aldred, demand for the brand’s Denali and AT4 trims are a key reason for its pricing power. He expects prices to rise further this year with the arrival of more Denali Ultimate and AT4X vehicles after numbers were limited last year due to supply constraints.
“We’re not a luxury brand, but we do operate at luxury prices,” Aldred told Auto News, adding that “we probably haven’t found the top spot yet.”
While Aldred may not view GMC as a luxury brand, Cox Automotive executive analyst Michelle Krebs says it is, even though it may be a little unconventional to view a maker of pickups and SUVs as a luxury brand.
“I have long said that GMC is a luxury brand,” she said. “It’s just because it sells just trucks and SUVs, for some reason, we have in our head it’s not a luxury brand. I think you have to define what luxury is. Because if you look at the average transaction prices on pickup trucks — and they can be pretty fancy — they are luxury vehicles.”
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GMC’s Denali Ultimate and AT4X trims “really push the upper echelons of where we can take GMC,” Aldred added. Key added features enjoyed by Denali Ultimate models include the Super Cruise semi-autonomous driving system and more luxury appointments while AT4X models also have some added luxury.
“We really felt we could take these to a new level,” he said. “If you get in either of these vehicles, you’ll see really high levels of luxury in terms of the materials in the vehicle, but you’ll also see all the latest technology.”
Aldred added that while prices for Denali versions of Yukon and Yukon XL models topped $90,000 this year through February, the brand still caters to buyers with smaller budgets, noting that a GMC Sierra can still be purchased in the $40,000 range.
