Ford Authority

Ford Average Transaction Prices Broke $50K Barrier In May

As many shoppers are willing to pay more than MSRP for new vehicles, as well as pony up for higher-trim level models with incentives virtually non-existent, Ford average transaction prices continue to rise with each passing month. That trend continued in April when Ford average transaction prices hit $49,615, yet another record high. Things didn’t cool off in May either, as The Blue Oval’s average transaction prices surpassed an important watermark by exceeding $50,000 and finishing the month at $51,581, according to new data from Kelley Blue Book.

That number is a whopping 5.3 percent month-over-month increase and 14.7 percent more than May of last year, outpacing the industry average of $47,148, which is one percent higher than April and 13.5 percent more than 2021. That number is also the second-highest in history, coming in only behind December 2021, when average transaction prices hit a record high of $47,202.

Meanwhile, new vehicle inventory remained steady, with days’ supply coming in the mid-30s last month as consumer demand stayed stable as well. This helped another trend – transaction prices averaging more than MSRP – continue for yet another month, as buyers paid $1,030 above sticker price on average in the non-luxury segment, while luxury vehicles sold for $1,071 over sticker. Given the state of the market, that doesn’t seem likely to change anytime soon either, as KBB pointed out.

“Prices for both new and used vehicles are showing signs of stabilizing, and price growth will likely decline over the course of the summer as the anniversary of the ‘big squeeze’ in inventory passes,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “However, no one should expect price drops, as tight supplies in the new market will hold prices at an elevated level into 2023.”

We’ll have more on the state of new vehicle pricing soon, so be sure and subscribe to Ford Authority for around-the-clock 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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  1. Scott

    Sure glad I bought my 22 Timberline 2 weeks ago.
    At $1500 rebate and a $2500 coupon from Ford Detroit in the mail,
    I sold my ’18 Fx4 and made some extra. Timing is everything.

  2. Mike says..

    If anything kills off the big three, it will be this escalating average cost. I remember how KIA and HUNYDAI entered the market on price competitiveness… now they have serious market share. This is all fine and good for shareholders but it is not sustainable and exposes FORD to competitive brands that will take their market share away… for good. Farley and FORD seem to forget their own company history and are willing to damage their name in the marketplace? I hope I am wrong as I like much of what Farley says and does.


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