As automotive production has largely ramped up through the course of 2023, inventory has improved as well. Thus, in spite of continued strong demand, Ford average transaction pricing has weakened somewhat as well, trending largely downward, albeit increasing 1.4 percent to $56,637 in the month of August. That growth also outpaced the market as a whole, which saw its ATP increase by 0.6 percent to $48,451. However, Ford average transaction pricing did fall somewhat in September, according to new data from Cox Automotive.
Last month, Ford average transaction pricing dipped by 0.8 percent, closing out September at $55,925. However, that’s still 5.2 percent higher than September 2022, when ATP came in at $53,185, though it did manage to outpace the market as a whole. Overall, new vehicle ATP across the market dropped by just 0.5 percent to $47,899, which is – however – 0.7 percent lower than the same time period last year, when it was $48,259.
According to Cox Automotive, this drop can largely be attributed to a steady increase in inventory, along with the return of incentives. The average incentive spend in the non-luxury segment finished the month at 4.7 percent of ATP, which is far higher than the 2.3 percent spend one year ago. However, the ongoing UAW strike could reverse this trend, depending on how long it ultimately lasts.
“After new-vehicle prices peaked at nearly $50,000 at the start of 2023, we’re seeing average transaction prices dip below $48,000 for the first time in more than a year,” said Rebecca Rydzewski, research manager at Cox Automotive. “Dealers and automakers are feeling price pressure, and with auto loan rates at record highs and growing inventory levels, new-vehicle prices continue to ease. Assuming the UAW strike is short-lived, current inventory levels are healthy enough to prevent any significant impact on consumer prices.”