Over the better part of the past three years, new vehicle prices continued to reach new record highs with each passing month. However, Ford average transaction pricing actually decreased by 1.1 percent to $56,307 in January, though that figure was still 12.2 percent higher than January 2022, when The Blue Oval’s ATP came in at $50,075. Regardless, it was a step in the right direction for prospective shoppers, and following CEO Jim Farley’s comments noting that he expects ATP to continue to fall, that was once again the case in February, as Ford average transaction pricing declined by 1.9 percent to $55,218, and that was once again the case in March, according to new data from Kelley Blue Book.
Last month, Ford’s ATP dropped by another 1.8 percent, bringing it down to $54,174, though that figure is still a substantial 13.3 percent higher than March 2022, when it was a mere $47,795. Regardless, three consecutive months of drops is good news for those that are in the market for a new vehicle, or will be in the coming months. As for the overall market, March ATP came in at $48,008, which is 1.1 percent less than February and 3.8 percent higher than March of last year.
Perhaps more interesting, March 2023 was the first time in nearly two years when the average price paid for a new vehicle was below MSRP – in this case, $171 less – while incentive spend rose to its highest level in 12 months at 3.2 percent of ATP in March 2023, averaging $1,516.
“The latest transaction data from March reveals new-vehicle prices continued a downward trend through the first quarter of 2023,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “Both luxury and non-luxury prices were down month over month. We’ve been anticipating transaction price declines, as inventory has been steadily improving and choice has expanded. More vehicles on dealer lots – and on their competitors’ lots – means dealers simply don’t have the pricing power they did six months ago.”
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.
Until it falls 20% of the high, consider me out of the market. And so should everyone, except for emergencies.
Totally agree…. i will wait it out. My reliable 03 F150 will need to keep on Truckin a little longer !
A good argument that inflation is cooling. CPI at 3% by June !
For those waiting it out for prices to drop, consider having your dealer custom order a truck for you – they will negotiate to take your order and are incentivized to get it as your unit will go out within days of arrival, sparing the flooring expense to them and making discounts easier. Folks seem to believe that having more inventory on the ground makes dealers want to deal, partly true, but each vehicle takes TLC each week it sits, is subject to lot damage, and in some cases, may require more extensive repairs from rodent damage if the storage lot is not patrolled. The more a dealer sells his goal from ordered units, the less he needs to stock and maintain – most dealers would love to downsize their lot sizes and staff that huge inventories require, and stock demos primarily for the test drives and paint colors.
Meanwhile, parts do NOT seem to be going down in cost, so future builds will use more expensive parts and raise your MSRP, whereas most orders are price protected from those increases.