Over the past year or so, new vehicle average transaction pricing has largely been on the decline following years of historic increases, though that downward slope hasn’t exactly been an even one. Rather, we’ve seen prices rise and fall on a month to month basis over that time frame, a trend that continued in December 2023, as Ford Motor Company ATP increased by 2.2 percent. Things took a bit of a turn in January, however, as both the Ford and Lincoln brands saw their ATP decline, and that was also true of Ford Motor Company as a whole, according to new data from Cox Automotive.
In January, Ford Motor Company average transaction pricing declined from $55,035 to $53,755 – 2.3 percent lower than the month prior – which is also 5.3 percent less than January 2023, when it was $56,751. This also essentially matched the movement of the overall automotive market as well, which saw its ATP drop by 2.6 percent, 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.”
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