For the most part, new vehicle average transaction pricing has declined through much of 2023 thus far, reversing an upward trajectory that had persisted for years prior. However, that hasn’t always been the case with the Ford or Lincoln brands, the former of which experienced a decline of 2.2 percent in October, while the latter, luxury brand saw its ATP rise by 1.5 percent last month. As for the entire FoMoCo umbrella, average transaction pricing dipped by 0.8 percent, closing out September at $55,925, and that decline continued in the month of October, according to new data from Cox Automotive.
Last month, Ford ATP declined by 1.2 percent, closing out October at $55,512. However, this number is still 1.2 percent higher than October 2022, when The Blue Oval’s average transaction pricing finished the month at $54,831, so there’s certainly still room for improvement in that regard. That performance also outpaced the overall market, which saw its ATP actually increase by 0.3 percent, from $47,797 to $47,936 last month, which is 1.4 percent less than October 2022, when it was $48,606.
Year to date, new vehicle average transaction prices have fallen by 3.5 percent as downward price pressure continues to favor buyers in the market, though new-vehicle incentive growth has taken a bit of a pause after considerable increases occurred through the spring and summer of 2023, remaining at 4.9 percent of ATP in the process.
“New-vehicle prices in October were mostly unchanged from September,” said Rebecca Rydzewski, research manager at Cox Automotive. “The only big mover last month was Tesla, which continues to shift pricing at a surprising pace. In fact, the price shifts at Tesla in 2023 showcase just how dynamic pricing can be with a direct-to-consumer sales model.”