Average new-vehicle prices stayed below MSRP for the second month in a row as manufacturer incentives rose, Kelley Blue Book reported.

The April average transaction price stayed flat month-over-month at $48,275, the Cox Automotive company said.

Transaction prices were still up year-over-year by 3.7%, though the average was $378 below sticker price. A year earlier, the average was a whopping $600 above manufacturer’s suggested retail price, Kelly Blue Book said.

“New-vehicle transaction prices are trending downward in 2023, which should feel like a breath of fresh air to buyers following the last few years of low supply and rapidly rising prices,” said Rebecca Rydzewski, research manager of Economic and Industry Insights for Cox Automotive.

“Now that inventory levels are starting to climb and manufacturers are increasing incentives, the market will respond accordingly. High auto loan interest rates are still a major issue for many buyers, but inventory and price trends are a positive in the market right now.”

Manufacturer incentive spending increased to its highest point of the past year at 3.6% of the average transaction price, averaging $1,714, Kelley Blue Book said.

In the nonluxury segment, average prices rose $461 month-over-month to $44,750, though that was still $381 below MSRP. Still, Chrysler, Ford, Honda, Nissan, Toyota and Volkswagen experienced average transaction price declines of up to 3.5%.

The average luxury vehicle price fell $1,605 to $64,144 month-over-month. Cox pointed out that robust luxury sales have been a major factor in overall inflated vehicles prices, and in April, they made up 18% of total sales.

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