A look back at July reveals new vehicle prices in the United States were lower, year-over-year, for the 10th consecutive month.
In a news release, Cox Automotive said data released by Kelley Blue Book shows the average transaction price for a new vehicle in the U.S. was $48,401. They also said new vehicle prices in July were mostly unchanged from the revised $23 lower June average transaction price of $48,424. It was also $106 lower than last year, and lower in July by 3.1% from the peak in December 2022 at $49,929.
“Higher inventory levels and higher incentives have shifted the U.S. auto market to favour buyers, but high loan rates and tight credit conditions continue to hold industry sales below potential,” said Cox Automotive in its update. They also said stubbornly high auto loan rates, which make monthly payments higher, are “leading many consumers “to stay on the sidelines or hunt for affordable options.”
The Mitsubishi Mirage was the only new vehicle in July to post an average transaction price below $20,000, and it will be discontinued at the end of the current year. Many popular vehicles in the U.S. market continue to transact below the industry’s average transaction price, including compact and subcompact SUV segments, which are popular in today’s market and accounted for around one in four 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,” said Cox Automotive. They also noted that sales of expensive full-size pickup trucks are pushing the industry’s average transaction price higher — with expensive full-size pickups making up around 14% of sales in the U.S. last month.
“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, in a statement. “There are many expensive, high-profile vehicles out there, but consumers have many good options priced well below industry average.”
