October’s average transaction price (ATP) for a new vehicle was $48,623 as incentives to make a deal continue to grow, according to data released from Kelley Blue Book (KBB).
The ATP rose $200 from September’s revised price and higher by 1.7 percent from year-earlier levels ($47,826). For more than a year now, new-vehicle prices in the U.S. have remained mostly unchanged and near $48,500, as higher inventory levels continue to hold downward pressure on the market, according to KBB officials.
Compared to one year ago, new-vehicle incentives have increased more than 60 percent as automakers compete for sales. New-vehicle sales incentives climbed higher in October, jumping from a revised 7.2 percent of the ATP in September to 7.7 percent in October, an increase of more than six percent month over month.
Incentives to Deal
Cox Automotive executive analyst Erin Keating observed that “’tis the season” for automakers to make their final push for 2024 sales.
“While some automakers focus on managing production, many will likely maintain or even increase their seasonal incentives to attract buyers,” said Keating. “With competition intensifying, these strategies will be crucial in maintaining market share and driving end-of-year sales.
In the U.S. market, the top three vehicle segments routinely account for more than 45 percent of all vehicle sales, according to KBB analysis, and competitive price pressures have ATPs moving in different directions.
Breakdown by Sector
Full-size pickup trucks, where sales have been relatively soft in 2024, saw year-over-year ATPs lower in October by 1.3 percent at $65,389, down from $66,256 in October 2023. ATPs for compact SUVs were mostly flat year over year, while midsize SUVs prices increased, but by less than 1.0 percent, below industry average.
New-vehicle incentives have been climbing for more than two years after hitting a floor in the Fall of 2022. In October, eight mainstream automakers had average incentive packages above 10 percent of average transaction price, and all four of the Stellantis brands—Chrysler, Dodge, Jeep and Ram—had incentive packages above the industry average, as the company works to clear inventory.
Ram incentives were among the highest in the industry. Porsche, Toyota, Land Rover and Cadillac continue to have the lowest incentive spend.
Keating: Optimism for Year End Sales
Incentives in the competitive compact SUV segment topped 9.4 percent of ATP as 25 different models are fighting for sales. The average transaction price for a new compact SUV was $36,769 in October, nearly 30 percent below the industry average.
Full-size pickup truck incentives averaged 8.7 percent of ATP last month, while midsize SUVs averaged 8.0 percent. In the midsize SUV segment, average transaction prices for 30 models averaged $48,977 in October.
“Our team is generally optimistic for new-vehicle sales to close out the year – extra incentives will certainly help,” said Keating.
