Ongoing supply chain issues including the chip shortage have impacted automotive production for over two years now, which has in turn sent prices skyrocketing to new record highs. However, things have cooled off a bit recently as supply has improved slightly and demand has subsided a bit, which led to Ford’s average transaction prices actually declining year-over-year in March. As more and more Lincoln customers opt to order their next new vehicle, the same can’t be said of Lincoln average transaction prices, which rose slightly last month, according to the latest data from Kelley Blue Book.
New vehicles sold for an average of $45,927 in March, which is 0.3 percent or $156 less than February, but 12.9 percent or $5,247 more than March 2021. Regardless, dealers continue to sell vehicles at or above MSRP amid low inventory – which remained in the low 30 days’ supply range last month – while demand for those vehicles is still high.
Meanwhile, Lincoln average transaction prices reached $61,401 in March 2022 – a 3 percent increase from $59,602 in February and a 1.6 percent jump from March 2021’s figure of $60,425. That figure is a bit lower than the overall luxury segment, however, which came in at $65,123 last month – $272 more than February and $2,550 above the MSRP of those vehicles. However, fewer and fewer buyers are purchasing luxury vehicles in recent months, as that segment’s share of the overall market fell to 15.4 percent in March versus 16.3 percent in February. Regardless, analysts don’t expect the trend of low inventory and high prices to end anytime soon.
“With a myriad of supply chain issues disrupting global vehicle production, we expect inventory to remain tight through the rest of the year and prices to remain high,” said Michelle Krebs, executive analyst for Cox Automotive.