While most expected new vehicle average transaction pricing to cool off somewhat in 2024, through the first half of the year so far, that hasn’t necessarily been the case. Even with inventory swelling and incentive spending on the rise, certain brands continue to hold their proverbial ground – and that includes both Ford and Lincoln. As a whole, Ford Motor Company ATP decreased slightly in May, but wound up going in the other direction in June.
According to new data from Cox Automotive, Ford Motor Company average transaction pricing closed out last month at $56,937, which is an even one percent higher than May’s figure of $56,374. Compared to June 2023, Ford Motor Company ATP also rose by 1.8 percent versus $55,958. In terms of individual brands, Ford’s ATP was 1.1 percent or $589 higher month-over-month at $56,542, while Lincoln ATP was flat compared to May at $65,479. As far as the overall market goes, ATP increased by a smaller margin of 0.6 percent versus May to finish June at $48,644, which is also 0.6 percent lower than June 2023’s figure of $48,951.
Though ATP for the overall market increased slightly last month, more notably, it was also lower year over year for the ninth straight month. Interestingly, incentive spending was down a bit in June as well, coming in at 6.4 percent of ATP or $3,102 versus 6.7 percent in May, though it remains much higher than June 2023’s 4.2 percent of ATP, or $2,036, on average. Regardless, this still signals that many automakers aren’t swayed by swelling inventory – at least not yet.
“As we head into the back half of the year, we are seeing that automakers are showing real discipline on pricing,” said Cox Automotive Executive Analyst Erin Keating. “Even brands holding onto more days’ supply, like many Stellantis brands, are keeping incentive spend in check. In June, Jeep increased to 6.3 percent – still below industry average – from 5.3 percent, and Ram actually declined to 5.5 percent from 6.3 percent. There appears to be a real effort to hold the line out there.”
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