While new vehicle pricing has declined somewhat over the past few months overall, it hasn’t quite dipped to the point that many expected. There are many factors at play that can be blamed for this phenomenon, but in the world of Ford Motor Company, we’ve actually seen average transaction pricing decrease in certain months, while increasing in others. However, things remained relatively stable for the automaker, as a whole, in July 2024.
According to new data from Cox Automotive, Ford Motor Company ATP (including both Ford and Lincoln) closed out last month at $56,383, which is 0.7 percent lower than June’s figure of $56,797. That number is also a very slight 0.3 percent higher than July 2023’s ATP of $56,200, however. The Ford brand saw its ATP decrease slightly, by 0.8 percent, from $56,396 in June to $55,932 last month – 0.2 percent higher than July 2023, when it was $55,846.
As for Lincoln, its average transaction pricing increased by one percent from June’s figure of $65,461, closing out July at $66,148 – which is 1.7 percent higher than July 2023, when that figure came in at $65,022. Regardless, the overall industry was flat month-over-month – $48,424 in June compared to $48,401 in July – and a mere 0.2 percent lower than July 2023’s figure of $48,507.
It’s worth noting that this means July 2024 still marks the 10th consecutive month of a decline in new vehicle average transaction pricing, even though it was a barely noticeable one. Cox Automotive points out that while higher incentives and inventory levels are working to drive prices down, high loan rates and tight credit conditions continue to prevent them from slipping further. There were 2.91 million vehicles in stock at the beginning of July – a 52 percent increase year-over-year – while incentive spending rose by 6.4 percent to 7.0 percent of the average transaction price, or $3,383. Regardless, expensive, full-size pickup trucks continue pushing the industry’s ATP higher.
“Not every brand is seeing sky-high days’ supply, but, in most cases, where there is excess, incentives are climbing,” said Erin Keating, executive analyst at Cox Automotive. “The higher incentives are helping consumers, but stubbornly high interest rates and tighter credit conditions continue to make affordability challenging. If we are going to see the market live up to its potential, we will need to see rates lower, and credit loosen.”
We’ll have more on Ford Motor Company average transaction pricing soon, so be sure and subscribe to Ford Authority for non-stop Ford news coverage.
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