New vehicle average transaction pricing has remained elevated for years to this point, even as inventory has grown to lofty levels as well – largely due to strong demand. Any hope that pricing would decline in the coming months has taken a hit on the backs of tariffs as well, which have already prompted Ford to raise prices on three of its imported models. That levies are also at least partially to blame for a rise in average transaction pricing in the month of April, though Ford Motor Company – including the Ford and Lincoln brands – didn’t grow quite as much as the overall market, at least.
According to new data from Cox Automotive, Ford Motor Company ATP closed out April 2025 at $54,933, which is 1.1 percent higher than March’s figure of $54,309 – though it’s also 2.9 percent lower than April 2024, when average transaction pricing came in at $56,584. The Ford brand grew by one percent month-over-month while declining 3.8 percent year-over-year at $54,057, while Lincoln increased by 2.1 percent month-over-month and 7.4 percent year-over-year at $69,728. As for the overall market, its ATP in April was $48,699 – 2.5 percent higher than March 2025’s $47,512 (the biggest April increase since 2020), as well as 1.1 percent more than April 2024’s $48,186.
Despite this continued increase in average transaction pricing, demand for new vehicles remained strong in April. New-vehicle sales pace last month came in at 17.3 million, which is lower than March, but also the strongest when it comes to the month of April since 2021. At the same time, new-vehicle sales incentives fell to 6.7 percent of ATP, which is down from 7.0 percent in March and the lowest we’ve seen since summer 2024. However, tariffs have clearly had an impact on pricing, overall, with Ford becoming one of the first to raise prices on imported models in response.
“Ever since President Trump announced auto tariffs 47 days ago, the cost of new cars has been steadily climbing,” said Erin Keating, Executive Analyst, Cox Automotive. “Even though there was a surge in shopping and sales early on, the manufacturer’s suggested retail prices haven’t budged. The pricing landscape is varied depending on the automaker, car segment and specific models – some are cutting incentives, others are in high demand, and the supply isn’t evenly distributed across the board.”
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