With new vehicle inventory still falling short of demand, prices continue to increase across the board. In fact, new vehicle pricing has reached record levels multiple times over the past couple of years, and even though inventory has improved somewhat lately, that hasn’t had much of an impact on soaring prices, though FoMoCo’s average transaction pricing did decline by 1.7 percent in October. However, November saw another uptick as Ford brand ATP rose by 2.3 percent month-over-month and 10.4 percent year-over-year, while Lincoln’s jumped by 1.6 and 4.2 percent, respectively. Now, according to new data from Cox Automotive, Ford Motor Company ATP was also up double digits in November, too.
Ford Motor Company ATP hit $55,581 in November, an increase of 2.1 percent over October’s total of $54,414. That amount is also 10.2 percent higher than November 2021, when FoMoCo’s ATP came in at $50,458. However, this trend wasn’t just limited to Ford and Lincoln 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.
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, too.
“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.”