Ford’s Average New Vehicle Prices Increase Five Percent Over 2020

In recent weeks, the ongoing semiconductor chip shortage has only worsened as automakers continue to slash production more and more each and every week. Ford has undoubtedly been affected by this problem as well, and it’s impossible not to notice the shrinking inventory on dealer lots around the country. That, coupled with increased demand, is driving up prices and eliminating discounts, which Kelly Blue Book notes has caused Ford’s average new vehicle prices to rise five percent over last year.

This marks a slight increase from January’s numbers, which showed that Ford’s average transaction price jumped 4.64 percent year-over-year. For comparison’s sake, average new vehicle prices for the entire U.S. auto industry rose just 2.2 percent, increasing $864 over last year to $40,768 in April. Ford’s average new vehicle price jumped from $44,755 in April 2020 to $46,992 in April of 2021, a $2,237 increase. However, this number did decline $999, or 2.1 percent, from March’s high of $47,991.

“Comparing the market to this time last year when COVID-19 brought the industry to a halt, highlights an increase in demand, sales, and vehicle prices all have contributed to continually rising transaction prices,” said Kayla Reynolds, industry intelligence analyst at Cox Automotive. “Many manufacturers reported year-over-year growth in average transaction prices with Volkswagen Group seeing the largest increase year over year (up 9 percent), while Tesla had the greatest decrease from last year, down 10.3 percent.”

Ford’s five percent increase placed it seventh among all automakers in the U.S., behind VW and Honda (8.8 percent), Hyundai/Kia (7.6 percent), General Motors (5.7 percent), Mitsubishi (5.5 percent), and Stellantis (5.2 percent).

Interestingly, neither this sharp increase in new (and used) vehicle prices nor shrinking selection has affected most buyers’ decision to purchase in any significant way. As we reported earlier this month, a mere 37 percent of new-vehicle shoppers surveyed said that they will put off purchasing a new vehicle because of these unfavorable conditions.

We’ll have more on new vehicle pricing soon, so be sure and subscribe to Ford Authority for ongoing Ford news coverage.