- Average new-vehicle incentives in July reached 7.0% of the
transaction price, the highest level in more than three years and
nearly 60% above levels recorded one year ago.
- The average transaction price (ATP) of a new vehicle in July
was $48,401, down 0.2% from one year
ago. Transaction prices have now been lower year over year for 10
straight months.
- Electric vehicle prices in July were higher than in June but
lower year over year by 1.5%.
ATLANTA, Aug. 13,
2024 /PRNewswire/ -- New-vehicle prices were lower
year over year for the 10th consecutive month in
July. Higher inventory levels and higher incentives have shifted
the U.S. auto market to favor buyers, but high loan rates and tight
credit conditions continue to hold industry sales below
potential.
In July, according to data released today by Kelley Blue Book,
the average transaction price (ATP) for a new vehicle in the U.S.
was $48,401. New-vehicle prices in
July were mostly unchanged from the revised-lower June ATP of
$48,424 (lower by $23) and last year ($106). According to Kelley Blue Book,
new-vehicle ATPs were lower in July by 3.1% from the peak in
December 2022 at $49,929.
Healthy inventory levels – 2.91 million vehicles at the start of
July, higher by 52% year over year, according to Cox Automotive's
vAuto Live Market View – continue to keep downward pressure on
vehicle prices. But stubbornly high auto loan rates, which make
monthly payments higher, are leading many consumers to stay on the
sidelines or hunt for affordable options. Only one new vehicle in
July posted an ATP below $20,000, the
Mitsubishi Mirage, which will be discontinued at the end of the
year.
Many popular vehicles in the U.S. market continue to transact
for well below the industry's ATP. Affordable vehicles from the
Compact and Subcompact SUV segments are very popular in today's
market, accounting for approximately 1 in 4 sales in July.
Incentive levels in these two segments are above the industry
average and ATPs, at $36,621 and
$29,827, respectively, are well below
the industry average.
Sales of expensive, full-size pickup trucks continue pushing the
industry's ATP higher. Expensive full-size pickups accounted for
14% of sales in the U.S. last month, and the average price paid for
a new, full-size truck was $65,713.
Incentive levels for full-size pickups were 8.1% in July, higher
than the industry average.
The two best-selling vehicles in the U.S. in July were full-size
trucks, the Ford F-series and the popular Chevrolet Silverado,
which the Chevrolet Rado will possibly replace in model year
2026. The average transaction price for the F-Series in July was
over $67,000; the Silverado ATP was
over $60,000. Last month, two
all-electric pickup trucks transacted for over $100,000 – the GMC Hummer EV Pickup ($111,242) and the Tesla Cybertruck ($111,018), the best-selling vehicle in the U.S.
priced over $100,000.
"The thing about the U.S. is its diversity, and that goes for
the U.S. auto market as well," said Erin
Keating, executive analyst at Cox Automotive. "There are
many expensive, high-profile vehicles out there, but consumers have
many good options priced well below industry average. We hear this
from the large dealers all the time: No matter the budget,
chances are we can make something work. This is particularly
true where inventory is higher, and incentives are following."
Incentives Growing
Average incentives in July rose to
7.0% of the average transaction price – $3,383 – up from 6.4% in June and the most
generous level seen in 2024. Incentives are now higher by 59.1%
compared to one year ago, when the average incentive package was
4.4% of ATP in July 2023. New-vehicle
incentives in July were at the highest point in more than three
years.
Nearly every major brand – except for Ram – had higher incentive
levels year over year in July, with the highest incentive spend
among volume automakers at Infiniti, Volkswagen, Audi and Nissan.
Surprisingly, despite industry-leading inventory levels, incentive
spending at the core Stellantis brands – Chrysler, Dodge, Jeep and
Ram – remains below the industry average.
"Not every brand is seeing sky-high days' supply, but, in most
cases, where there is excess, incentives are climbing,"
added Keating. "The higher incentives are helping consumers,
but stubbornly high interest rates and tighter credit conditions
continue to make affordability challenging. If we are going to see
the market live up to its potential, we will need to see rates
lower, and credit loosen."
EV Incentives Track Higher as Prices Hold Steady
The
average transaction price for an EV in July, at $56,520, was higher than in June but lower year
over year by 1.5%. The average incentive package offered with a new
EV in July was over 12% of the transaction price, the highest level
in more than three years and roughly twice the level seen in
July 2023 when typical incentive
packages were equal to 6.0% of ATP. EV incentives in July were 73%
higher than the industry average.
Average transaction prices at Tesla continue to move higher
after dropping to near the industry average in December 2023. In July, Tesla ATPs were
$59,593, up 11% from one year ago and
at the highest point since February
2023. Success of the popular new Cybertruck is likely
pulling Tesla prices higher, although the volume products, the
Model 3 and Model Y, have seen prices rise consistently through the
year. In July, the ATP for the Model Y was $52,055, up 5% from January, while the Model 3
was $53,878, up a remarkable 30% from
January when Model 3 ATPs were $41,531. The Model Y and the Model 3 are the
top-selling EVs in the U.S. market.
Data tables are available for download.
About Kelley Blue Book
Founded in 1926, Kelley Blue Book, The Trusted
Resource®, is the vehicle valuation and information
source trusted and relied upon by both consumers and the automotive
industry for nearly a century. As the industry standard for
generations, Kelley Blue Book provides transparent, objective
information and data-driven, innovative tools for consumers,
automotive dealers and manufacturers. Kelley Blue Book
publishes millions of market-reflective values weekly on its
top-rated website KBB.com, from its famous Blue
Book® Trade-In Values to the Kelley Blue
Book® Price Advisor tool, which offers a range for
what consumers reasonably can expect to pay for a vehicle in their
area. KBB.com editors rate and review hundreds of new vehicles each
year to help consumers understand the Best
Cars and Best SUVs to meet their needs. Kelley
Blue BookSM Instant Cash Offer provides a
redeemable trade-in offer to transaction-ready consumers and
conveniently connects them to local participating dealers. Kelley
Blue Book's Service Advisor provides guidance on how much to pay
for service and repairs, allowing consumers to schedule service
with local dealers on KBB.com. Kelley Blue Book also provides
vehicle values to finance and insurance companies as well as
governmental agencies. Kelley Blue Book is a Cox
Automotive brand.
About Cox Automotive
Cox Automotive is the world's
largest automotive services and technology provider. Fueled by the
largest breadth of first-party data fed by 2.3 billion online
interactions a year, Cox Automotive tailors leading solutions for
car shoppers, auto manufacturers, dealers, lenders and fleets. The
company has 29,000+ employees on five continents and a portfolio of
industry-leading brands that include Autotrader®, Kelley
Blue Book®, Manheim®, vAuto®,
Dealertrack®, NextGear Capital™,
CentralDispatch® and FleetNet America®. Cox Automotive
is a subsidiary of Cox Enterprises Inc., a privately owned,
Atlanta-based company with
$22 billion in annual revenue. Visit coxautoinc.com or connect via
@CoxAutomotive on X, CoxAutoInc on Facebook
or Cox-Automotive-Inc on LinkedIn.
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SOURCE Cox Automotive