The average transaction price (ATP) for a new vehicle in the United States was, for the 11th consecutive month, lower year-over-year when considering August figures.
That is according recent to data released by Kelley Blue Book, which considers that higher inventories continue to generate price pressure on the market. The new-vehicle ATP was $47,87 in August, which is down 0.6% compared to the revised July ATP of $48,166.
“In our latest dealer survey, the message about price pressure was very clear,” said Erin Keating, Executive Analyst at Cox Automotive, in a statement. “Dealers are telling us the sales environment is humming along at a muted pace and there is growing pressure to lower prices, just as the overall cost index hit a new record high.”
In a news release, KBB said incentive levels were up month-over-month and YoY in August, based on its own data. They said the average incentive package equaled 7.2% of ATP — up from 7.0% in July to the highest level since the first half of 2021. In comparison, incentive spending was 4.8% of ATP a year ago. It peaked in the past decade at 10.8% of ATP in December 2019.
“In the face of a sluggish sales pace — 15.1 million in August — more dealers are pulling the only lever they have: higher incentives,” said Keating. “This shift to a buyers’ market is good news for consumers but certainly impacts dealer profitability. Automakers are coming to the table with more incentives, but credit remains tight, putting more pressure on dealers to get creative with additional discounts and financing, affecting the bottom line.”
