Through the course of 2024, we’ve seen new vehicle average transaction pricing fall somewhat compared to the past few years, but not much – certainly not as dramatic a drop as many expected. Even with inventory swelling to alarming levels and incentives returning in some cases, ATP continues to hold its ground, and that’s certainly true of the Lincoln brand as well. In fact, Lincoln average transaction pricing actually increased in November 2024, one month after dropping a bit in October.
According to new data from Cox Automotive, Lincoln average transaction pricing came in at $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. By comparison’s sake, the Ford brand’s average transaction pricing in November 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 the overall 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 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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