Over the past few years, both new and used vehicle prices have soared to new record highs with almost every passing month. In December, that trend continued as Ford average transaction pricing rose 3.3 percent in December, month-over-month, from $54,943 to $56,756, as well as 12 percent year-over-year from $50,692. However, there have been signs over the past few months that things are beginning to cool off a tad, largely thanks to improving inventory levels. That rang true in Ford average transaction pricing in January, which actually fell slightly, according to new data from Kelley Blue Book.
Ford average transaction pricing (for the brand, not including Lincoln) came in at $56,171 in January 2023, which is 1.1 percent lower than December. However, it’s still 12.2 percent higher than January 2022, when The Blue Oval’s ATP came in at $50,075. That performance did outpace the overall market, which dropped just 0.6 percent from $49,698Â to $49,388 last month, which is still 5.9 percent higher than January 2022’s figure of $46,620.
According to KBB, this decline can be attributed to a number of factors – most notably, a slight improvement in inventory levels, while sales increased by six percent year-over-year, though they declined a bit versus December. However, pricing still remains high by historical standards, with new-vehicle ATPs coming in above the average manufacturer’s suggested retail price (MSRP) by an average of $310 versus $900 a year ago.
“The transaction data from January indicates that overall prices are no longer increasing like they were a year ago,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “Both luxury and non-luxury prices were down month over month, but the mix of luxury vehicle sales last month – at a record high near 20 percent – helped keep the overall average price elevated.”
We’ll have more on Ford average transaction pricing soon, so be sure and subscribe to Ford Authority for around-the-clock Ford news coverage.
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