While new vehicle pricing has surged for the better part of two years now, routinely setting new records with each passing month, things began to cool slightly in August. Ford average transaction pricing remained steady in that particular month, while Lincoln average transaction pricing actually declined four percent, month-over-month. Now, new data from Kelley Blue Book shows that Ford average transaction pricing dropped two percent in September, while Lincoln average transaction pricing actually rose by nearly two percent.
Last month, Lincoln’s ATP actually bucked an industry-wide trend by rising 1.8 percent, from $63,538 in August to $64,663 in September. That figure also represents a 3.8 percent increase over September 2021, when the luxury brand’s ATP came in at $62,291. Meanwhile, the entire automotive industry as a whole finished the month with an average transaction price of $48,094, which is 0.3 percent lower than August’s $48,240 but 6.1 percent higher than $45,319 last year.
Meanwhile, luxury vehicle market share remains historically high, increasing to 18 percent of total sales in September from 17.6 percent in August. The high share of luxury sales is helping to push the overall industry ATP higher as well. In September 2022, the average luxury buyer paid $65,775 for a new vehicle, down $60 from August when luxury ATPs hit a record high of $65,835. Buyers continue to pay more than MSRP for new luxury vehicles, although prices are trending closer to or below sticker prices in some luxury segments.
“Interest rates and average monthly payments were up in September, which means affordability worsened,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “With prices still well above MSRP and incentives from automakers still low, sales in September continued to struggle as consumers weighed their vehicle-buying options.”