Ford Average Transaction Price Down Three Percent In February 2025

Soaring inventory levels have yet to make a sizable dent in new vehicle pricing, as many are painfully aware, which has also come as a bit of a surprise as most expected prices to fall back to earth following years of increases during the pandemic. That hasn’t materialized, and in fact, some automotive brands have actually increased in terms of average transaction pricing over the past several months. That’s certainly true of Ford average transaction pricing, but in February, it did cool off just a tad.

According to new data from Cox Automotive, Ford average transaction pricing declined by 2.9 percent from January to February, from $55,693 to $54,082, which is its largest drop in quite some time. However, due to several increases throughout the course of the past year, Ford average transaction pricing is still 0.6 percent higher than February 2024, when it closed out the month at $53,786. Regardless, this comes on the heels of a 1.4 percent drop in January, so perhaps this is a sign that the market is finally beginning to shift in that direction.

Ford average transaction pricing also outpaced the overall market in that regard, as it experienced a 1.3 percent decline – from $48,675 to $48,039 – which was one percent higher than February 2024’s $47,551. According to Cox Automotive, incentives remained mostly flat month-over-month, coming in at 7.1 percent of ATP, or around $3,392, which played a role in those figures. Lower priced vehicles continue to prove difficult to find in today’s market, while those priced at $100,000 and up accounted for 52,000 units sold in January and February – up from 46,000 a year ago.

“February marks the five-year anniversary of the last ‘clean month’ of data prior to the global COVID pandemic that shifted the automotive landscape,” said Erin Keating, Executive Analyst Cox Automotive. “Compared to February 2020, ATP is up 25 percent while incentives are down 13 percent and monthly sales are down 9 percent. Auto loan rates are higher now as well, making new-vehicle affordability a real challenge for most households. While affordability is a challenge for many households, six-figure vehicles continue to sell well and have experienced a four-fold increase in sales volume since early 2020. The income divide remains a key issue for new-vehicle sales momentum, as the industry continues to count on high income households with prime and super prime credit scores to drive sales.”