Ford Average Transaction Price Stable In September 2024

After years of record-breaking new vehicle average transaction price (ATP), new vehicles are steadily becoming more affordable, which is good news for the consumer. Inventory is back on the rise, driving prices downward as dealers focus on clearing stock off their lots. Comparatively, Ford ATP held steady last month in the U.S., indicating that things are beginning to stabilize.

The latest ATP report from Cox Automotive reveals that buyers of a new Ford vehicle shelled out $56,489 on average, up just 0.9 percent from $55,963 reported in August 2024, and a slight 1.6 percent climb from September 2023, during which Ford ATP was measured at $55,618. In other words, the slight upswing in ATP is negligible.

Ford’s ATP reflects a greater industry trend. Overall, the average price of a new vehicle was $48,397 last month, increasing slightly from August and dropping 0.4 percent on a year-over-year basis.

The decrease can be in part attributed to increased incentive spending, which increased for the third straight month in September, another tactic used by dealers to help empty their lots. Last month, incentive spending accounted for roughly 7.3 percent of new vehicle ATP, or $3,522 on average, up from 7.2 percent in August 2024. However, that’s well above the 4.8 percent reported in September 2023.

It’s also worth noting that the price of electric vehicles – such as the Ford Mustang Mach-E – slipped year-over-year by 0.9 percent, averaging $56,351. Incentive spending for electric vehicles hit an all-time high last month, accounting for 12.3 percent of ATP, or $6,904.

“New-vehicle transaction prices continue to be very steady this year, and higher incentive spending is helping maintain sales volume,” said Cox Automotive Executive Analyst Erin Keating. “We still believe there is potential for growth in the market for the rest of the year, but with the uncertainty of a national election around the corner and major weather events disrupting business, maybe a slow, steady pace is all we should expect.”