Following a period of years when we saw nothing but steady increases, Ford average transaction pricing has remained largely unchanged for a while now, which is a bit of welcome relief for consumers. Ford’s ATP even declined 1.9 percent in May versus April, and in June, it was a modest 0.3 percent higher at $54,446, as well as 2.2 percent lower than June 2024’s $55,662. Now that July is in the rear-view mirror, we’re learning that Ford average transaction pricing somewhat bucked that trend over the past month, however.
According to new data from Cox Automotive, Ford average transaction pricing for July came in at $55,733, which is an increase of 2.4 percent versus June, as well as one percent higher than June 2024, when that same figure was $55,167. This was also quite different from the overall new car market, which posted an ATP of $48,841 in July – 0.1 percent lower than June’s $48,900, though also 1.5 percent higher than July 2024’s $48,104.
Meanwhile, incentives increased from 7.0 percent to 7.3 percent of ATP month-over-month, or $3,553. MSRPs were a bit lower – 0.3 percent – compared to June, but also, 2.4 percent higher than a year ago. Regardless, most luxury brands saw big jumps in ATP last month, indicating that the market is being buoyed by those with more money to spend, according to Cox Automotive.
“In the face of rising prices, it is becoming more evident that the new-vehicle market is being supported by pent-up demand driven largely by high-net-worth households,” said Erin Keating, Executive Analyst, Cox Automotive. “These buyers are benefiting from the wealth effect of a healthy stock market and solid wage growth since the pandemic. At the same time, automakers are providing healthy incentives to keep sales flowing. Prices are trending higher, but just as we are seeing in the broader retail markets, there’s sufficient demand and generous incentives out there, and that’s driving the market.”
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