Many had hoped that sharp automotive inventory growth over the past year or so would place downward pressure on new vehicle pricing, but unfortunately for shoppers, that hasn’t really been the case. Rather, new vehicle pricing has remained quite stubborn even as dealer lots are overflowing with inventory in some cases, which is certainly true of Ford Motor Company. With both the Ford and Lincoln brands continuing to post some of the highest inventory levels in the business, overall Ford Motor Company average transaction pricing did cool a bit in February 2025, at least.
According to new data from Cox Automotive, Ford Motor Company ATP came in at $54,557 as of the end of last month, which is 2.8 percent lower than January’s $56,135, but still 0.4 percent higher than February 2024, when it was $54,337. In terms of individual brands, Ford average transaction pricing declined by 2.9 percent from January to February, from $55,693 to $54,082, while Lincoln’s ATP ended February at $65,166, which is a mere 0.4 percent lower than January’s figure of $65,397. As for the overall automotive market, 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.”
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