While the automotive industry as a whole has seen its average transaction pricing decline by a decent amount through the duration of 2023, the same can’t be said of Lincoln, which finished the month of October with an average transaction price of $67,878 – a figure that was 2.2 percent higher than September and 3.4 percent higher than October 2022, when it was $65,624. However, Lincoln ATP did decline in the month of November, according to new data from Cox Automotive.
While the Ford brand saw its ATP drop by 0.7 percent month-over-month to close out November at $54,525, Lincoln ATP dropped by a more significant 1.5 percent versus October, landing at $66,860, though it’s still one percent higher compared to November 2022, when it was $66,201. Regardless, this figure outpaced the overall market, which saw its ATP decline by just 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.”