New vehicle prices in the United States were higher year-over-year in November, for the second consecutive month, as the average transaction price reached $48,724 — up $699 or 1.5 per cent from November 2023.
The data was provided by Kelley Blue Book in its latest update, which noted that the November ATP was also higher by $720 compared to the downwardly revised ATP in October of $48,004. November started with more than 3 million units in new vehicle inventory, for the first time since 2020, and grew. Despite higher prices, the seasonally adjusted annual rate (SAAR) of sales was 16.5 million for the month.
“Higher prices were met with higher discounts in November, which has kept the retail business moving,” said Erin Keating, Executive Analyst at Cox Automotive, in a statement. “Following the national election, pent-up demand and some improvements in consumer confidence seem to be driving the market. And higher incentives are certainly helping as well.”
KBB said new vehicle sales incentives for November averaged 8.0 per cent of the ATP, an increase from October’s 7.8 per cent. A year ago, incentive spending was 5.3 per cent of the ATP. Incentives in November were higher by 50 per cent, YoY, which amounts to approximately $1,300. Vehicle prices, on the other hand, increased only 1.5 per cent , or approximately $700.
“The end of the year typically sees an increase in transaction prices, as luxury sales pick up as the year winds down,” said Keating. “If sales volumes in November are any indication, we think 2024 will end on a positive note for the auto business. Yes, prices are trending higher year-over-year, but higher incentives and discounts are bringing in buyers.”
