Lincoln SUV/crossover sales enjoyed a record month in July, coming in at 6,968 units, good enough for a 68.3 percent increase. Every single model in the luxury brand’s lineup posted some sort of increase, with the Lincoln Corsair leading the way by jumping an impressive 231.39 percent over last year’s result. Meanwhile, Lincoln’s brand consideration remained steady in Q2 after falling for two consecutive quarters, while Lincoln average transaction pricing increased by seven percent in June. However, according to the latest data from Cox Automotive, Lincoln average transaction pricing actually decreased in July, bucking an overall rise in prices in the luxury vehicle segment and the new auto market as a whole.
In July, Lincoln average transaction pricing came in at $66,406, which $2,397 or 3.5 percent less than June, when the average Lincoln vehicle sold for $68,803. It’s also 0.2 percent less than July 2021, when the luxury brand’s ATP came in at $66,555. Meanwhile, Lincoln’s competitors continued to post big year-over-year increases in that regard, including Acura at 15.6 percent, BMW at 13.1 percent, and Infiniti at 13.7 percent, to name a few.
The luxury vehicle segment posted an ATP of $65,530, which is $382 less than last month. However, the overall automotive market recorded a double-digit increase in average transaction pricing as well – 11.9 percent – though a much smaller jump of 0.3 percent month-over-month to come in at $48,182 versus $48,042 in June 2022 and $43,056 in July 2021. That was still good enough to set yet another new record in this regard. With most buyers still paying more than MSRP for new vehicles and prices continuing to soar, conditions remain unfavorable for buyers.
“It’s still a sellers’ market,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “New-vehicle inventory levels are better than a year ago, but remain historically low, and that’s keeping new-vehicle prices elevated. Still, even though average prices are at a record level, there are affordable vehicles out there. Compact cars and SUVs and subcompact models typically transact for 30 percent to 40 percent below the industry average.”
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Didn’t Farley recently allude to the Escape going away? When the decision was made to dump the Edge, the Nautilus announcement followed immediately. Would they build a Corsair without the Edge?
FMC needs to be careful. Judging from the average transaction price in this report, that had to have included lots of Corsair and Nautilus inventory. The best selling luxury brands all have “entry level” products to get consumers started in hopes of cultivating long-term buying relationships because of both product quality and dealer care. If the intent is to keep and grow Lincoln, I hope they’re attuned to that product need.