Most fully expected new vehicle average transaction pricing to cool off throughout the course of 2024 following several years of record increases, but thus far, that hasn’t exactly been the case. While ATP hasn’t increased at the same rate as before, it also isn’t declining by any significant amount either, and some brands have actually posted increases during more than one month. Lincoln is among that group, and even as the luxury brand’s inventory levels continue to remain near the highest in the industry, its average transaction pricing hasn’t declined much – at least, until October 2024.
According to Cox Automotive, Lincoln average transaction pricing dropped by 2.5 percent in October, coming in at $65,198 compared to September’s $66,872. That number was also 3.4 percent lower than October 2023, when Lincoln’s ATP finished the month at $67,524. Interestingly, the Ford brand was completely flat in October versus September with a mere $9 difference in ATP, while the overall industry came in at $48,623, which is 0.4 percent higher than September’s $48,423, as well as 1.7 percent more than October 2023’s $47,826.
Despite this, incentive spending rose sharply in October – from 7.2 percent of ATP in September to 7.7 percent in October, or more than six percent month over month. Compared to one year ago, new-vehicle incentives have increased more than 60 percent, too, all as automakers try to conjure up sales before the end of the year. Regardless, Lincoln has some work to do in terms of clearing vehicles off it lots, as the automaker had the second highest days’ supply of inventory of any automotive brand in September at a 147 days’ supply – compared to the overall average of 81 days’.
“‘Tis the season for automakers to make their final push for 2024 sales,” said Cox Automotive Executive Analyst Erin Keating. “While some automakers focus on managing production, many will likely maintain or even increase their seasonal incentives to attract buyers. With competition intensifying, these strategies will be crucial in maintaining market share and driving end-of-year sales. Our team is generally optimistic for new-vehicle sales to close out the year – extra incentives will certainly help.”
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