Following years of steady increases, new vehicle pricing began to taper off through the course of 2023 – a trend that’s expected to continue in 2024, too. This was true of Lincoln average transaction pricing in January, in fact, which fell by 2.6 percent month-over-month and four percent year-over-year. Now that another month has passed, new data from Cox Automotive shows that this downward trend took a slight pause in February, however, as both Ford and Lincoln average transaction pricing remained essentially stable.
In February, Lincoln ATP finished the month at $65,724, which is a mere 0.5 percent higher than January, when it came in at $65,412. This figure was also 4.2 percent lower than February 2023, when the Lincoln brand’s ATP was $68,623. As for the overall market, it largely followed suit, as average transaction pricing for new vehicles finished February at $47,279, which is a nominal 0.1 percent higher than January’s $47,244, as well as 2.2 percent less than the $48,316 it was in February 2023.
Regardless, the downward pressure on new vehicle pricing continues as inventory keeps rising, all while automakers introduce more incentives in an effort to spur sales – in fact, incentive spending in February was 5.7 percent higher than January. At the beginning of February, new vehicle inventory levels in the U.S. stood at 2.61 million units, which is 50 percent more than February 2023, though a strong seasonally adjusted annual rate (SAAR) of 15.8 million units in sales has that particular figure on track for its best annual result since 2019.
“While everyone may applaud that prices are coming down, even marginally for the moment, affordability is still challenging the market,” said Erin Keating, executive analyst for Cox Automotive. “Most shoppers have not seen their incomes increase as quickly as vehicle prices, so affording a new vehicle remains difficult. We should also note that despite rising inventory, which is good for consumers, the levels are muted, not alarming.”
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