The average transaction price (ATP) of new vehicles has been slowly declining after new vehicle inventory stooped to dangerous lows following a series of unfortunate circumstances stemming from the COVID-19 pandemic. As far as Ford Motor Company goes, the combined Ford and Lincoln ATP held fast in December 2024, posting almost no change on a month-over-month basis in the United States.
According to the latest report from Kelley Blue Book, buyers shelled out $57,134 on average for a new vehicle built by Ford Motor Company, for Ford and Lincoln. That represents a slight 0.3 percent increase from November 2024 when FoMoCo buyers spent $56,941 on average. During the same time period in 2023, the price of a new FoMoCo vehicle averaged $56,205, meaning that December 2024’s ATP represents a 1.7 percent increase year-over-year.
Breaking ATPs down even further, we find that the average cost of a new Ford vehicle also stayed flat. Owners paid $56,515 for a Blue Oval vehicle on average. On the luxury side of things, buyers of a new Lincoln paid $66,611 on average, representing almost no month-over-month change from November 2024, or on a year-over-year basis from December 2023.
Comparatively, across the entire automotive industry, ATPs stayed flat at $49,740 last month. That represents a slight 1.5 percent increase from November 2024, and a 1.3 percent increase compared to December 2023.
It’s also worth noting that incentive spending is still relatively high. Incentives accounted for approximately eight percent of ATP in December 2024, representing a 44 percent increase from the same time period one year ago as vehicle inventory remains high at the dealer level.
“It was a December to remember, in terms of both sales volumes and prices,” said Cox Automotive Executive Analyst Erin Keating. “As we reported just after the election, consumer sentiment and confidence have been on the rise. Vehicles, especially luxury vehicles, are typically an emotional purchase, and when consumers are optimistic, they go shopping. Rates dipped for a short bit late in 2024, discounts were higher, and the glass was half full. No wonder we saw the lift in both prices and volume.”
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