New-Vehicle Price Drops Continue
Despite that and rising incentives, conditions still challenging for consumers.
Inventory stood at 2.9 million units as July opened, up 52% year-over-year.
Pexels/InstaWalli
U.S. new-vehicle prices continued their descent from pandemic-era heights in July for what Cox Automotive observed to be the 10th straight month of decreases.
It put the average transaction price at $48,401, essentially flat month-over-month and down 3% from the peak Cox observed to be in December 2022, when it was a couple of hairs under $50,000.
Of course, the descent is courtesy of revived inventory, which stood at 2.9 million units as the month opened, up 52% year-over-year.
Despite incentives being up 59% year-over-year – the average was up to 7% of the average transaction price, the highest of the year so far – consumers are challenged by still-elevated interest rates, said Cox. It noted just one model on the market with an average transaction price under $20,000: the compact Mitsubishi Mirage, which will be discontinued after this year.
ATPs keep rising in part due to the popularity of expensive pickups, which Cox said made up 14% of July sales, though their ATP was a whopping $65,713. It said incentives for full-size trucks, at 8%, were higher than the industry average.
Originally posted on Auto Dealer Today
More Industry
Autos More Appealing
Consumers gave new cars better scores again this year for design, performance and more as mass-market brands kept gaining on premium lineups, JD Power found in an annual poll.
Read More →
Used EVs Defy Overall Market
While the used-car market saw three months of price declines or stagnation, the used EV segment did the opposite – rising for three straight months.
Read More →
Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →