Though most expected new car pricing to drop by a relatively large margin in 2024, thus far, that hasn’t necessarily been the case. In fact, Ford and Lincoln average transaction pricing have experienced quite a few ups and downs through the first few months of the year, increasing and decreasing with virtually each turn of the calendar thus far. This roller coaster ride of sorts continued in May, as the Ford brand’s ATP declined slightly for the first time in a couple of months, but that wasn’t the case with Lincoln average transaction pricing.
According to new data from Cox Automotive, Lincoln average transaction pricing closed out May at $65,495, which is essentially unchanged from April, when it was $65,500. However, that figure is still 3.4 percent less than May 2023, when Lincoln’s ATP was $67,796. As for the overall market, May’s ATP came in at $48,389, which is essentially flat versus April 2024’s figure of $48,368 and 0.9 percent less than May 2023’s $48,830.
Regardless, this marks eight consecutive months that new vehicle ATP has declined, a trend that’s largely driven by increasing inventory and higher incentive spending. The average new-vehicle incentive in May came in at 6.7 percent of the average transaction price, which is the highest level since May 2021 and far higher than the 4.0 percent they accounted for one year ago. Meanwhile, new vehicle inventory kicked off the month at 2.84 million units, which is 51 percent more than May 2023 and the highest since late 2020, all of which helped boost sales as well.
“In May, we saw some positive news on the sales front,” said Erin Keating, executive analyst for Cox Automotive. “A lot of those sales gains were juiced by higher incentives and lower prices, which is good news for consumers worrying about inflation. While there are a lot of vehicles transacting at very high prices, that doesn’t mean all new vehicles are unaffordable. There are still plenty of excellent, well-priced vehicles out there, particularly in the compact segments.”
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.
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