The new-vehicle market has become a buyer’s one as the industry continues its post-Covid rebalancing.
The average U.S. transaction price fell 1.5% year-over-year in November for the third straight month of declines, said Cox Automotive, which marked the trend as the only time in a decade that the monthly average didn’t rise.
As inventory rebounds, prices fall and incentives increase – the latter exceeded 5% of the average transaction price in November for the first time since September 2021 – consumers are finding it easier to buy new after many have been pushed to the used-vehicle market due to affordability concerns. Incentives were up a whopping 136% year-over-year for the month and exceeded 8% for luxury and electric models, Cox said.
Vehicle prices themselves still aren’t declining, it pointed out. The average manufacturer suggested retail price was flat year-over-year as it rose under 1%; Cox said new-vehicle MSRPs haven’t fallen year-over-year for a decade. But discounts and incentives tick it down for the consumer.
Sixteen of 35 auto brands Cox’s Kelley Blue Book followed for the month had year-over-year ATP declines, Tesla leading the pack with a 20.5% decrease.
DIG DEEPER: Buying New Gets a Little More Affordable
