Though things have cooled off slightly, Ford’s average transaction pricing, as a whole, increased by 10.4 percent year-over-year in November, a 2.3 percent month-over-month increase to $55,105. In terms of individual models, through the third quarter, the Ford Explorer saw its ATP increase 6.9 percent versus Q3 2021, while the Ford Edge rose even more – 7.2 percent – over that same time period. The red-hot Ford Bronco wasn’t immune to this trend either, as its average transaction pricing also grew by 8.3 percent year-over-year in the third-quarter, according to new data from Cox Automotive.
That increase meant that Ford Bronco average transaction pricing came in at $53,866 at the conclusion of Q3 2023, following a long-running trend that began not terribly long after the onset of the pandemic in spring 2020. Ford’s ATP had been on the decline prior to November, however, dropping two percent in September, going from $53,770 to $52,675. However, the automaker’s average pricing is still up 3.6 percent over the 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.
Regardless, 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. Meanwhile, 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.”