While new vehicle average transaction pricing has begun to cool off somewhat in the first half of 2023, the cost of those models hasn’t exactly dropped dramatically by any means. In fact, in July, ATP for both the Ford and Lincoln brands proved to be quite stable, with the former rising 0.7 percent month-over-month to $56,026, while the latter declined by 0.1 percent to $65,118. As for FoMoCo as a whole, that meant a bit more stability in terms of average transaction pricing as well, according to new data from Cox Automotive.
Last month, FoMoCo average transaction pricing came in 0.7 percent higher than than June – $56,377 versus $56,004, though that number was still 2.6 percent higher than June 2022, when it was $54,954. As for the overall market, ATP fell by 0.7 percent, going from $48,671 to $48,334, which is just 0.4 percent higher than June 2022, when it was $48,135. However, that 0.4 percent increase is the smallest year-over-year price jump in the last decade.
As for non-luxury vehicles, July’s ATP came in at $44,700, which is $471 less than June, while luxury vehicles finished the month at $63,552 – down $192 month-over-month. Incentive spending increased for the tenth consecutive month, averaging $2,148, or 4.4 percent of the average transaction price – its highest level since October 2021. However, only one model – the Mitsubishi Mirage – had an ATP under the $20k mark, which is a stark contrast to just five years ago, when 12 vehicles landed under that price point.
“New-vehicle price inflation has all but disappeared in 2023,” said Rebecca Rydzewski, research manager at Cox Automotive. “New-vehicle prices, primarily driven by cuts in luxury and electric vehicles, are decreasing as inventory is steadily improving. With higher inventories and higher incentives helping to keep downward pressure on prices, there certainly are good reasons for shoppers to be heading back into the market.”