Buying new vehicles proved pricier for the second month in a row in November, though incentives grew even more to pump up sales, which were also aided by bigger inventories.
The average transaction price for the month totaled $48,724, up about 2% month-over-month and the highest of the year in a typical late-year surge, said Cox Automotive, which pointed out that luxury sales tend to pick up toward year’s end.
The ATP compared with the historical record of $49,926 in December 2022, based on Cox data.
At the same time, incentives have been growing more than vehicle prices, reaching 8% of the ATP, up slightly month-over-month for the fifth straight month of gains.
Plenty of vehicle selection drew more buyers. Inventory exceeded three million units for the first time since 2020, the year the pandemic ensued in the West.
New-vehicle sales, despite still-high prices, were consequently brisk, Cox said, at about 1.4 million units for a seasonally adjusted annual rate of 16.5 million and the strongest pace since the spring of 2021.
Along with incentives and plenty of supply, pent-up demand and consumer certainty following the November election fueled business.
“If sales volumes in November are any indication, we think 2024 will end on a positive note for the auto business,” said Cox Executive Analyst Erin Keating.
