Overall, new vehicle transaction prices were expected to begin to fall in 2023 following years of increases, and through the first half of the year, that was certainly the case, for the most part. Ford average transaction pricing is no exception to this rule, most recently dropping by an even one percent in June, while the market as a whole saw its ATP rise by 0.3 percent, from $48,658 to $48,808, which is 1.6 percent higher than last June. However, Ford average transaction pricing remained stable in the month of July, according to new data from Cox Automotive.
Last month, Ford average transaction pricing came in 0.7 percent higher than than June – $56,026 versus $55,625, though that number was still 2.9 percent higher than June 2022, when it was $54,443. 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.”