Ford Authority

Lincoln Average Transaction Prices Up $11,500 In July 2021

As Ford Authority reported yesterday, Ford’s average transaction prices continued to climb in July of 2021, this time by $8,400 to nearly $50,000. However, the same rings true for Lincoln average transaction prices, which expanded even further, by $11,500 last month to $62,400. That’s nearly twice the rate of the overall luxury segment and roughly $5,000 more than the segment average.

This impressive Lincoln average transaction pricing was driven by record retail orders – which are nearly double last year’s – and a host of new products. As Ford Authority previously reported, Ford is also focusing on producing its most profitable vehicles, which undoubtedly played a large role in these rising average transaction prices.

These results aren’t exclusive to Ford or Lincoln, however, as the overall automotive market is setting new ATP records virtually every month as the semiconductor chip shortage rages on. The shortage has had a major impact on automotive production, leading to record-low inventory on dealer lots. As a result, automakers are offering fewer and fewer incentives and selling vehicles at or even above MSRP, which is driving prices even higher.

Despite the fact that conditions are less than ideal, consumers are still buying up new vehicles, which is also feeding the fuel of this ever-rising ATP. This has also led to a bit of a revelation for Ford, which recently revealed that it will pivot to a built-to-order model rather than filling its dealer lots with inventory, as CEO Jim Farley recently admitted that the automaker has been “wasting money on incentives” for some time now.

Average transaction prices were already on the rise prior to the chip shortage as consumers continue to opt for more expensive vehicles and trims, and coupled with these new trends, that doesn’t figure to change anytime soon.

We’ll have more insights like this to share soon, so be sure and subscribe to Ford Authority for more Lincoln news and non-stop Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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