With low inventory, high demand, and scant few incentives continuing to keep used and new vehicle prices afloat, consumers are finding deals harder and harder to come by these days. Even though things have improved slightly in recent months in terms of inventory, at least, prices continue to hover around record levels. Blue Oval models are no exception to this rule either, as according to Cox Automotive data, the average transaction price of the Ford Bronco Sport rose nearly seven percent in Q3 of 2022.
Ford Bronco Sport average transaction pricing grew by 6.6 percent in the last quarter to $36,532, but it wasn’t alone in that regard. As a brand, Ford’s average transaction pricing increased by 10.4 percent year-over-year in November, a 2.3 percent month-over-month rise to $55,105. In terms of individual models, through the third quarter, the Ford Explorer saw its ATP increase by 6.9 percent versus Q3 2021, while the Ford Edge rose by 7.2 percent, the Ford Bronco by 8.3 percent, the Ford Mustang Mach-E by 7.9 percent, and the Ford F-Series line of pickups jumped 6.6 percent. Over that same time frame, Ford’s incentives – which historically have taken thousands off the purchase price of new vehicles – plunged 64 percent year-over-year, which played a big role in affordability.
There are signs that prices and rising interest rates are having an impact on affordability also, as consumers are starting to pivot toward lower trim levels and expanding their terms in an effort to lower monthly payments as incentives hover near all-time lows. 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.”