Cox Auto: U.S. New-Vehicle Prices Show Downward Trend; Market Leans Towards Buyers

• Average Transaction Price (ATP): November 2023 saw the ATP for new vehicles at $48,247, down by 1.5% year over year, marking a third consecutive month of decline.
• Incentives on the Rise: November's incentives exceeded 5% of ATP, a peak not seen since September 2021, showcasing a shift to a buyer-friendly market.
• Luxury Vehicle Prices Decreasing: Luxury vehicles experienced a notable price drop of over 7.5% compared to last year, with their market share exceeding 20% - a record high.

Incentive Trends:

• Year-Over-Year Increase: Incentives are up by 136% compared to last year.
• Luxury and Electric Vehicles: Incentives for these categories are significantly above the industry average, while full-size SUVs, minivans, and small/mid-size pickups have minimal incentives.

Luxury vs Non-Luxury:

• Luxury Sales Surge: Prices for luxury vehicles dropped by 7.5% year over year, likely fueling a 19.6% increase in sales.
• Non-Luxury Stability: With historically low incentives, average non-luxury vehicle prices showed a minimal year-over-year decrease.

Electric Vehicles (EVs):

• Closing Price Gap: The average price for EVs in November was $52,345, only 8.5% higher than the industry average, due to increased incentives and good inventory levels. This trend suggests a nearing price parity with internal combustion engine vehicles.