Following years of skyrocketing prices stemming from production woes, short supply, and high demand, most expected the automotive market to return to earth in that regard through the course of 2024, but that’s not exactly what has happened thus far. Rather, strong demand for new vehicles continues, even as pricing and interest rates remain high and inventory has swollen to – in some cases – alarming levels. Thus, we’ve seen average transaction pricing remain fairly steady through the duration of this year, and that was once again the case with Ford Motor Company ATP in November 2024.
According to new data from Cox Automotive, Ford Motor Company average transaction pricing (including both the Ford and Lincoln brands) came in at $56,921 last month, which represents a one percent increase from October’s figure of $56,332, as well as a more substantial 3.9 percent jump compared to November 2023’s $54,801. Ford brand ATP came in at $56,344, which is 0.9 percent higher than October’s figure of $55,826, as well as 3.8 percent more than November 2023, when its ATP was $54,262.
As for Lincoln, its ATP was $66,623 last month, which is 2.3 percent higher than October’s figure of $65,112, though also 0.2 percent lower than November 2023’s $66,752. As for the overall new vehicle market, it posted an ATP of $48,724 in November 2024, which was 1.5 percent higher than October’s $48,004, as well as November 2023’s $48,025.
This is the second straight month that new vehicle ATP has risen, even though inventory climbed above three million units for the first time since 2020. The reason for this stems from robust sales, as in spite of these higher prices, shoppers scooped up 1.36 million new vehicles in November across the U.S. – the best such mark since spring 2021. Incentive spending averaged 8.0 percent of ATP, which is up from 7.8 percent in October, making the fifth straight month of increases, too.
“Higher prices were met with higher discounts in November, which has kept the retail business moving,” said Cox Automotive Executive Analyst Erin Keating. “Following the national election, pent-up demand and some improvements in consumer confidence seem to be driving the market. And higher incentives are certainly helping as well. The end of the year typically sees an increase in transaction prices, as luxury sales pick up as the year winds down. If sales volumes in November are any indication, we think 2024 will end on a positive note for the auto business. Yes, prices are trending higher year over year, but higher incentives and discounts are bringing in buyers.”
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