New-Car Prices Fall
Y-O-Y change comes despite strikes, flat incentives, Cox says.

New-vehicle prices are down nearly 4% so far this year.
IMAGE: Pexels/Torsten Dettlaff
Reviving inventory pushed down the average U.S. new-vehicle price in October, despite Detroit-based strikes that slowed production at some automotive plants, Cox Automotive said.
The average of $47,936 was down 1.4% year-over-year and was essentially flat month-over-month.
Cox said new-vehicle sale prices so far this year are down nearly 4%.
“The only big mover last month was Tesla, which continues to shift pricing at a surprising pace,” said Cox Research Manager Rebecca Rydzewski, who observed that the U.S. electric-vehicle market leader's price cuts this year show “just how dynamic pricing can be with a direct-to-consumer sales model.”
The average nonluxury price was $44,331, flat year-over-year, while the average luxury price was $62,903, down 7.4% year-over-year. The average EV price was $51,762, down 20%, significant, given high price being a major obstacle to mass EV adoption.
The return of incentives from their pandemic dormancy receded during the summer, as average packages showed little change, hovering at slightly less than 5% of the average transaction price, according to Cox, which said incentives remain significantly down from historical normals. In October, nonluxury incentives averaged 4.9% of ATP compared to the 4.6% luxury incentive average, the reverse of the trend that had prevailed most of this year.
Originally posted on Auto Dealer Today
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