Ford Authority

Lincoln ATP Down Three Percent In January 2024

Following several years of historic gains, new vehicle average transaction pricing finally began to cool off a bit in 2023, though certainly not to the extent where pricing isn’t still pretty close to record levels. In December, Ford brand average transaction pricing actually increased month-over-month by 2.2 percent, in fact, though in January, it wound up declining by 2.3 percent – essentially negating those gains. As for the Lincoln brand, its average transaction pricing increased by a modest 0.8 percent to close out the year, but wound up declining by a more significant margin in the first month of the year, according to new data from Cox Automotive.

In January 2024, Lincoln average transaction pricing closed out the month at $65,598, which is a 2.6 percent drop compared to December, when its ATP was $67,365. It’s also an even four percent lower than January 2022, when Lincoln’s ATP was $68,351. This performance essentially matched the movement of the overall automotive market as well, as 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. Much of this decline – at least as it pertains to Lincoln – likely revolves around the fact that the brand’s inventory levels are currently standing at around double the national average.

According to Cox Automotive, some of this downward trend also 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 Lincoln average transaction pricing soon, so be sure and subscribe to Ford Authority for the latest Lincoln news¬†and comprehensive¬†Ford news updates.

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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