With inventory rapidly improving, we’ve seen new vehicle average transaction pricing decline through much of 2023. That somewhat includes the Ford brand, which saw its ATP increase by 1.4 percent to $56,637 in the month of August, though it fell by 0.8 percent last month, closing out September at $55,925. However, things really began to ramp up – or down, rather – in October, as Ford average transaction pricing fell by a more substantial margin last month, according to the latest data from Cox Automotive.
Last month, Ford ATP declined by 1.5 percent, closing out October at $54,912. However, this number is still 1.1 percent higher than October 2022, when the Blue Oval brand’s average transaction pricing finished the month at $54,313, so there’s certainly still room for improvement in that regard – though the gap is closing, for certain. 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.
As for the non-luxury segment, ATP finished October at $44,331, which represents an increase of less than one percent from one year ago. 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.”