October’s new-vehicle average transaction price was flat after record peak in September as lack of affordability continued to weigh the market toward the well-off.
Cox Automotive calculated an ATP of $49,766, off less than half a percentage point from September’s and still up 2% year-over-year. Meanwhile, the average asking price clocked in at $51,841, down less than 1% and up year-over-year by nearly 3%. Both September figures set industry records.
September’s prices soared as bargain shoppers rushed to buy electric vehicles before the federal EV tax credit expired, while many others drove away in models with high price tags, including pickups.
Incentive spend fell 11% month-over-month, Cox reported, the average at 6.5% of ATP compared to 7.6% a year earlier.
Luxury brands led the way on price increases last month, including Cadillac with a 22% year-over-year ATP jump, and Porsche, whose ATP was up 13%. But even some mass-market brands’ price increases eclipsed industry averages, including Chevrolet, Cox said.
Full-size trucks’ ATP set a record in October at $66,462 as their average asking price hit $70,351. Higher incentives in the segment, at 8.4% of ATP, helped juice sales, Cox said.
“Fortunately for automakers, there is continued strength in consumer demand, especially from well-heeled households,” said Cox Executive Analyst Erin Keating. “Consumers remain engaged, and while affordability challenges persist, the industry is adapting with incentives and product mix shifts. We’ve been anticipating a slowdown in the market. This is a story of moderation, not retreat.”
EVs’ ATP rose about 2% from both September and a year earlier to $59,125 as sales tanked 49% after the tax break expiration, or a 30% year-over-year drop.
Bright spots for cash-strapped consumers were seen in the significant year-over-year price drops of Acura, Jeep and Tesla.
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