While both used and new vehicle prices have risen to new record highs over the past couple of years with no end seemingly in sight, things have begun to improve somewhat in recent months. In fact, Ford’s average transaction pricing actually declined by two percent from August to September, going from $53,770 to $52,675, though the brand’s ATP is still up 3.6 percent over this same period last year, when pricing averaged $50,856, and the market as a whole dropped 0.3 percent, from $48,240 to $48,094. In terms of individual models, the Ford Explorer experienced a 6.9 percent gain in ATP in Q3, however, while the Ford F-Series line of pickups jumped 6.6 percent to $63,866, according to Cox Automotive.
The Ford F-Series continues to enjoy tremendous demand in spite of limited supply and ever-rising prices, and that success pertains to both the ICE-powered pickups and the all-electric Ford F-150 Lightning, which just had its best sales month to date in October. However, there are signs that prices and rising interest rates are having an impact on affordability, as consumers are starting to pivot toward lower trim levels and expanding their terms in an effort to lower monthly payments. Regardless, Ford wrapped up the third quarter of 2022 with just 19 days supply of new vehicle inventory, compared to 40 days back in February.
“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.”
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