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Ford Authority

Ford ATP Up Two Percent In December 2023

Over the past year or so, new vehicle average transaction pricing has declined somewhat following years of historic rises, and that trend continued this past November, as Ford Authority previously reported, Then, Ford brand average transaction pricing dropped by 0.8 percent to close out the month at $55,058. That figure was also 1.5 percent lower than November 2022, when the automaker’s ATP came in at $55,923, and it 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. November was the third consecutive month that overall ATP declined, but that trend did not continue in December, according to new data from Cox Automotive.

Last month, Ford ATP actually increased by 2.2 percent to $55,628, though in good news, that figure is also 2.5 percent lower than December 2022, when the brand’s average transaction price was $57,027. The overall new vehicle market somewhat followed suit, however, with its ATP increasing by 1.3 percent to $48,759, which was also 2.4 percent lower than December 2022, when that same figure came in at $49,939.

This news isn’t all doom and gloom, however, as Cox Automotive notes that December marks the fourth consecutive month that new-vehicle transaction prices were lower versus last year, which is unique in that the industry typically sees year-over-year increases. This was driven by an increase in incentive spending – reaching 5.5 percent of ATP for the first time since August 2021 – a big jump from the 2.7 percent incentives accounted for in December 2022.

“When we look at price strength, the pandemic created a seller’s market in which new vehicles were transacting above manufacturers’ suggested retail price in 2022,” said Michelle Krebs, executive analyst for Cox Automotive. “That market is all but gone now, as higher inventory has led to higher incentives and discounts – lower margins for dealers – and vehicles are now typically selling for under MSRP. The shift from a seller’s market to a buyer’s market is well underway.”

We’ll have more on Ford average transaction pricing soon, so be sure and subscribe to Ford Authority for non-stop Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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