After rising to new record highs on numerous occasions during the pandemic – largely due to low inventory levels caused by production issues and supply chain kinks – new vehicle pricing hasn’t really come back to earth as many hoped that it would. In fact, average transaction pricing has remained stubbornly high amid strong demand, even as prices and interest rates remain at elevated levels. However, in the first month of 2025, Ford Motor Company average transaction pricing did decline a bit, at least.
According to new data from Cox Automotive, Ford Motor Company ATP closed out January 2025 at $56,146, which is 1.7 percent lower than December’s figure of $57,131, but also still 2.1 percent higher than January 2024, when it was $54,971. Of that total, the Ford brand saw its average transaction pricing come in at $55,704, which is 1.4 percent lower than December 2024’s figure of $56,512, yet also 2.2 percent higher than January 2024’s $54,495. As for Lincoln, its ATP finished the month at $65,396, which is 1.8 percent lower than December’s figure of $66,614, but also 0.8 percent higher compared to January 2024’s $64,846.
As for the overall market, its January 2025 ATP of $48,641 was 2.2 percent lower than December’s $49,738, not to mention just 1.3 percent higher than January 2023’s figure of $48,031. Incentives declined from 8.0 percent of ATP in December to 7.2 percent in January, averaging $3,486 – 29.2 percent higher, year-over-year. Cox Automotive attributes much of the drop in ATP to the fact that luxury vehicles tend to sell quite well over the holidays before tumbling in January, however. Regardless, new vehicle sales also grew year-over-year by 5.1 percent in January, though fell by a significant 25 percent compared to a rather strong December result.
“After a surprisingly hot December, both new-vehicle sale volume and prices were lower in January as the market took a seasonal breather,” said Erin Keating, Executive Analyst Cox Automotive. “Notably, Jeep brand ATPs in January were lower year over year by almost nine percent, as the storied make continues to manage a perceived price challenge. In fact, Jeep ATPs in January were close to $49,000, not far from the industry average, and the lowest point in more than three years.”
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