Average transaction pricing among new and used vehicles alike has been on the rise for some time now, a byproduct of supply chain shortages, low inventory, and high demand. In the month of October, Ford average transaction pricing for the brand increased by a grand total of 2.8 percent month-over-month and nearly seven percent year-over-year, coming in at $53,966. Now, that trend continues – in a big way – as Ford average transaction pricing jumped by 10.4 percent year-over-year in November, according to new data from Kelley Blue Book.
That increase brought the Ford brand ATP for November up to $55,105, which is 2.3 percent higher than last month – a slight slowdown, but still a notable uptick of $1,139, as well as $5,211 more than the same month last year. This trend wasn’t just limited to The Blue Oval either, as the entire new vehicle market’s ATP rose by 0.9 percent or $422 month-over-month and 4.4 percent or $2,250 year-over-year to $48,681. Non-luxury vehicles also increased by $330 to $44,584 – a new record.
This means that another trend – vehicles being sold for more than MSRP – also continued last month after initially beginning back in July 2021. Meanwhile, new vehicle inventory is steadily improving, though so are sales – in November, new vehicle sales rose by more than 11 percent, but were down from October’s levels. These elevated prices and high interest rates are subsequently placing downward pressure on sales, according to KBB.
“The transaction data from November clearly indicates that prices are showing no signs of coming down as we head into the holiday season,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “The mix of available vehicles still favors more expensive models and higher trim levels. In fact, average MSRP has increased more than average ATP year over year, indicating automakers are still building a richer mix of expensive models and fewer value vehicles. Incentives overall are still very low, but consumers who are flexible on make and model may be able to find a good deal at year-end sales events.”