With supply chain shortages easing and inventory growing, new vehicle average transaction pricing has declined somewhat throughout 2023, and that’s also true of Ford Motor Company. That decline has been more gradual for FoMoCo, as its ATP dipped by 0.8 percent in September and 1.2 percent in October, however. Last month, the Ford brand saw its ATP decline by 0.7 percent while Lincoln was down 1.5 percent, meaning that Ford Motor Company average transaction pricing, as a whole, dipped slightly month-over-month as well.
Last month, FoMoCo’s average transaction pricing dropped by a mere 0.8 percent to close out November at $55,058. Perhaps more notable, that figure is also 1.5 percent lower than November 2022, when the automaker’s ATP came in at $55,923. These figures also outpaced the overall market, which saw its ATP decline by 0.6 percent month-over-month to $48,247, as well as 1.5 percent year-over-year.
Interestingly, November marks the third consecutive month that new-vehicle transaction prices were lower year-over-year – as well as the only time in the past decade that the monthly new-vehicle ATP did not increase year-over-year. Cox Automotive attributes this continued decline to a ramp up in incentives, which rose by 136 percent year-over-year to reach 5.2 percent of the average transaction price in November, which more than double last year’s 2.2 percent. However, this isn’t good news for everyone involved in the industry.
“While consumers may feel some relief in vehicle prices and incentives as we close out 2023, automakers and dealers are feeling the results of the downward price pressure,” said Rebecca Rydzewski, research manager at Cox Automotive. “The latest dealer sentiment survey by Cox Automotive clearly indicates that dealers are seeing profits contract as inventory levels return to normal, and incentives are turned up to help stimulate sales.”