Ford ATP Drops Two Percent In January 2024

February 13, 2024 10:41 am

Throughout the course of 2023, new vehicle average transaction pricing began to cool after years of continuously soaring to new record heights, providing a little relief to shoppers at the same time. However, new vehicle pricing still remains near those historic highs, and in December, Ford average transaction pricing actually increased month-over-month, in that case, by 2.2 percent. Now that January is in the rear-view mirror, new data from Cox Automotive shows that this gain essentially disappeared in the first month of 2024, however.

In January, Ford ATP declined from $54,407 to $53,184 – 2.3 percent or $1,223 lower than the month prior – which is also 5.5 percent lower than January 2023, when it was $56,267. This also essentially matched the movement of the overall automotive market as well, which saw its ATP drop by 2.6 percent or $1,251 from $48,652 to $47,401, which is also 3.5 percent lower than January 2023’s average transaction price of $49,125.

According to Cox Automotive, some of this downward trend stems from slowing sales, which is happening in spite of dropping prices and increased incentive spending. The seasonally adjusted annual rate (SAAR) – or sales pace for the automotive industry – was 15 million in January 2024, which is down from 16.1 million in December 2023 and 15.1 million in January 2023. At the same time, incentive spending last month averaged 5.7 percent of total ATP versus 5.5 percent in December and a mere 2.8 percent in January 2023.

“It is common to see lower transaction prices and sales in January, as December typically is a hot month for luxury vehicle sales,” said Erin Keating, executive analyst for Cox Automotive. “However, the year-over-year new-vehicle ATP decline of 3.5 percent is notable. Prices have been trending downward for roughly six months now as automakers are sweetening deals to keep the sales flowing.”

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

By Brett Foote

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.