August represented a solid month of sales for The Blue Oval, which enjoyed a 27 percent increase to 158,088 units, outperforming the industry as a whole in the process. Meanwhile, Ford average transaction pricing set yet another new record in the month of July, rising 0.6 percent month-over-month to reach $53,991. However, as new vehicle pricing rose once again for the fifth straight month in August, Ford average transaction pricing remained pretty stable, according to new data from Kelley Blue Book.
Last month, Ford’s ATP came in at $53,829, which is actually a 0.3 percent or $162 decline over July, though 4.6 percent higher than August 2021, when it was $51,476. That’s also a bit better than the industry as a whole, which rose by 0.5 percent month-over-month and 10.8 percent year-over-year to finish the month at $48,301 – another new record. At the same time, inventory continues to improve and was 43 percent higher in August than the same period in 2021, though still far below 2019 and 2020 levels.
Meanwhile, the average price paid for a new non-luxury vehicle last month was $44,559, up $132 month-over-month and a record for non-luxury vehicles, beating out the high set the prior month. Car shoppers in the non-luxury segment paid on average $1,102 above sticker price, an increase from the prior month. Non-luxury shoppers paid nearly two percent above MSRP in August, compared to one percent above MSRP a year ago.
“Prices are still high and climbing incrementally every month,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “New-vehicle inventory levels have been rising through August, now reaching the highest level since June 2021. However, supply of popular segments – like subcompacts, hybrids and EVs – still remain very low. Automakers are focusing on building and selling high-margin vehicles. Essentially, the product mix is the primary factor keeping prices high.”
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Comments
Thank you for the high prices! Because new cars are stupid high I refuse to buy a new vehicle. I keep what I have running in tip top shape and will continue till prices come down. I use to buy a new vehicle every three years but not this time around. The Ford dealership that I buy from keeps sending me offers to trade mine in and buy new. And no EV for me.
I am of the exact same mind frame, and position, as you, Kurt.
I have the same feelings as Kurt , Ford needs to quit looking how much they can squeeze out of a customer, and get back to looking at quality again!!! I have been a Ford customer all my driving life. From 2010 till now the quality of Ford has been declining and the techs just can’t keep up with all the problems that the plants don’t correctly assemble!
Driving since 1968, I have NEVER seen car prices go down! Kurt, You may have a very long wait!
i agree Dennis, once they figured out that they can fleece the paying public they’ll never let up. now that they want to shift to pre-orders only and get away from having dealership stocks that could remain unsold until cleared out at “sales” pricing we’ll never see consumer friendly prices again. the ball is in their court, and they’ll take it home before letting us play with it.
Ford may not want dealers to have stock, but the 2 Ford dealers that are in my city are filling up their lots, pretty fast, with 2022 vehicles. They are at about 70 – 75% of their pre pandemic inventories, and are already starting to give selective discounts, below MSRP. And with a possible recession coming, it is only going to get worse.
Ford still needs somewhere for their factories to dump assembled vehicles, parking them in lots waiting on missing computer chips is not cutting it any more.