A number of factors have contributed to a steady rise in Ford average transaction prices over the past several months, most notably, the semiconductor chip shortage and supply chain issues that have severely impacted automotive production. As a result, more and more car shoppers are ordering their next new vehicle and paying more than MSRP to purchase one off a dealer lot as new vehicle affordability continues to be impacted. Back in February, Ford average transaction prices surged to a new record of $48k, but it seems as if that isn’t the ceiling just yet, according to new data from Cox Automotive.
In April, Ford average transaction prices – which includes both Ford and Lincoln vehicles – reached a new high of $49,615, which is 2.4 percent higher than March’s average of $48,454. As a whole, new vehicles from all manufacturers averaged $46,526, a 0.7 percent increase from $46,223 in March. That’s a marginal gain, yet still significantly more – 13 percent, or $5,354 – when compared to April 2021.
In the meantime, new vehicle inventory days’ supply remains low in the 30-day range while consumer demand remains high, which is a perfect formula for rising prices. Additionally, Cox Automotive expects that many vehicles will continue to sell over MSRP for the foreseeable future. In April, the average non-luxury vehicle moved for $862 above sticker price, while the average luxury vehicle sold for $1,865 over MSRP.
“For nearly a year now, we’ve seen new vehicles transacting above suggested retail prices,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “High prices, a lack of inventory, few incentives – the market is changing, pushing many would-be buyers to the sidelines and forcing others to order from future stock and wait. We expect new-vehicle affordability will be a challenge for the foreseeable future.”