New vehicle pricing had been on a bit of a steady decline through much of 2023, but in July, Ford average transaction pricing actually increased by 0.7 percent over June – going from $55,625 to $56,026, though that number was still 2.9 percent higher than June 2022, when it was $54,443, while the overall market declined by 0.7 percent, from $48,671 to $48,334. That trend continued in August as well, according to new data from Cox Automotive, as Ford average transaction pricing once again rose by a small amount.
Last month, Ford average transaction pricing grew by a total of 1.4 percent to $56,637, which is also 4.4 percent higher than August 2022, when it finished the month at $54,232. This growth outpaced the market as a whole, which saw its ATP increase by 0.6 percent to $48,451, which is a mere 0.1 percent higher than last year.
As for the non-luxury part of the market, average incentive spending finished the month at 4.7 percent of ATP, which is up from 2.3 percent a year ago. Month over month, incentive spending was up 9.5 percent, increasing from 4.3 percent of ATP to 4.7 percent, which helped prevent prices from rising even further. However, only three vehicle segments had an ATP that was below $30k overall – compact and subcompact passenger cars, as well as subcompact SUVs. Regardless, experts don’t expect new vehicle pricing to rise much further in the coming months.
“After a tumultuous last few years in the automotive marketplace, now we are seeing new-vehicle pricing trends hold steady,” said Rebecca Rydzewski, research manager at Cox Automotive. “Dealers and automakers are feeling price pressure, and with high auto loan rates and growing inventory levels, new-vehicle prices seem to have hit a ceiling, at least for now. The very real potential for a UAW strike may impact some product lines, but with the current inventory levels in place, we don’t expect a short-lived strike to impact consumer prices in any meaningful way, at least in the near term.”