Ford Authority

Ford Motor Company ATP Up Three Percent In May 2023

Following years of steady increases and new record highs, new vehicle average transaction pricing finally began to fall early this year, posting a decrease through Q1. This was also mostly true of both Lincoln and Ford, though the two FoMoCo brands diverged a bit in May, with Lincoln’s average transaction pricing falling by 4.1 percent to $67,798 and Ford gaining 3.4 percent month-over-month to hit $56,013. In the meantime, Ford Motor Company – as a whole – posted an increased in ATP as well, bucking the overall market in the process.

Ford Motor Company ATP grew by a grand total of 3.1 percent or $1,699 in May to reach $56,465. That’s also a hefty 8.7 percent increase compared to May of 2022, when FoMoCo’s average transaction pricing finished the month at just $51,965. As for non-luxury vehicles in general, average transaction pricing grew by 3.7 percent or $158 to reach $44,960, while luxury vehicle ATP increased by $239 to $64,396 in May.

There is some good news among this data, however, starting with the fact that May represents the fifth straight month that overall new vehicle ATP remained below the manufacturer’s suggested retail price (MSRP). Incentive spending also continues to grow – this time to 3.9 percent of ATP, or $1,914 – the highest it’s been in a year – which could mean good things for consumers moving forward. Cox Automotive shares this rosy future outlook, with all signs still pointing to a decline in new vehicle pricing moving forward.

“The modest new-vehicle price increase in May was offset by increased incentives, so many buyers were able to find deals below sticker,” said Rebecca Rydzewski, research manager of Economic and Industry Insights for Cox Automotive. “This is good news for consumers as manufacturers are seeing higher inventory and increased competition and need to push sales to keep inventory moving.”

We’ll have more on Ford’s average transaction pricing soon, so be sure and subscribe to Ford Authority for continuous Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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