New-Vehicle Sales Slow Despite Lower Prices
Continued incentive increases weren’t enough to stop sales pace decline.
Despite less pocketbook pressure, the sales pace for the month fell from 16.1 million in December to 15 million.
IMAGE: Pexels/Erik McIean
New-vehicle transaction price drops increased in January, the average falling 2.6% to $47,401. But it wasn't enough to stop a sales slowdown.
The new average price was down 3.5% year-over-year, Cox Automotive said.
Part of the reason was a third straight month of increased incentives, which averaged 5.7% of the average transaction price. That was up nearly 100% year-over-year and from 5.5% in December.
Despite less pocketbook pressure, the sales pace for the month fell from 16.1 million in December and 15.1 million a year earlier to 15 million.
Lower January prices are typical after the brisker holiday sales season that’s particularly hot for luxury models, but last month’s decline was deeper than normal, Executive Analyst Erin Keating said in a press release.
“Prices have been trending downward for roughly six months now as automakers are sweetening deals to keep the sales flowing.”
Luxury model price drops led the way in January’s trend, Cox said. The average fell from $62,834 in December to $60,978, its lowest since the summer of 2021, Cox said.
Originally posted on Auto Dealer Today
More Industry
Structure Leads to Optimized Auto Listings
As the average car-buying journey has shifted to a blend of digital and retail, a dealership’s vehicle listings must be optimized to answer shoppers’ questions clearly and accurately.
Read More →
Consumers Mixed on Economy, Finances
A July survey shows spotty sentiment of current and future conditions, in addition to demographic differences as overall opinion of present circumstances kept sliding.
Read More →
EVs Closing the European Gap
Electrified powertrains led June new-vehicle sales in Europe, reaching 26% of the market.
Read More →
Early Intervention Saves Retention
Sales and service departments have the highest annual dealership turnover rates, according to a new industry report, costing money and time that could be better spent elsewhere.
Read More →
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 →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
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 →