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
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 →