- Average purchase incentives for new vehicles reached 7.0 percent of the transaction price in July, the highest level in over three years and almost 60 percent more than recorded a year ago.
- The average transaction price (ATP) of a new car in July was 48,401 USDa decrease of 0.2% year-on-year. Transaction prices have now been lower year-on-year for ten consecutive months.
- Electric vehicle prices were higher in July than in June, but 1.5% lower year-on-year.
ATLANTA, 13 August 2024 /PRNewswire/ — New vehicle prices were lower than last year in the 10th month in a row in July. Higher inventories and increased incentives have shifted the U.S. auto market in favor of buyers, but high loan rates and tight credit conditions continue to keep the industry’s sales below their potential.
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In July, the average transaction price (ATP) for a new vehicle in the United States was 48,401 USDNew car prices in July remained largely unchanged compared to the downwardly revised ATP in June. 48,424 USD (lower by $23) and last year (106 USD)According to Kelley Blue Book, ATPs for new vehicles in July were 3.1% lower than the peak in December 2022 at 49,929 USD.
Healthy inventory levels – 2.91 million vehicles at the start of July, up 52% from a year ago, according to Cox Automotive’s vAuto Live Market View – continue to put downward pressure on vehicle prices. But stubbornly high auto loan rates that drive up monthly payments are causing many consumers to wait and see or look for affordable options. Only one new vehicle in July recorded an ATP below 20,000 US dollarsthe Mitsubishi Mirage, whose production will be discontinued at the end of the year.
Many popular vehicles in the U.S. market continue to trade at prices well below the industry ATP. Affordable vehicles in the compact and subcompact SUV segments are very popular in today’s market, accounting for about 1 in 4 sales in July. Incentive levels in these two segments are above the industry average, and ATPs are 36,621 USD And $29,827are each significantly below the industry average.
Sales of expensive, large pickup trucks continue to drive up the industry’s ATP. Expensive, large pickup trucks accounted for 14% of U.S. sales last month, and the average price for a new, large pickup truck was 65,713 USDThe incentive level for large pickup trucks was 8.1% in July, above the industry average.
The two best-selling vehicles in the US in July were full-size trucks, the Ford F-Series and the popular Chevrolet Silverado, which the Chevrolet Rado may replace in the 2026 model year. The average transaction price for the F-Series in July was over 67,000 US dollars; the Silverado ATP was over 60,000 US dollarsLast month, two fully electric pickup trucks were sold for over 100,000 US dollars – the GMC Hummer EV pickup ($111,242) and the Tesla Cybertruck ($111,018)the best-selling car in the USA with a price of over 100,000 US dollars.
“The special thing about the USA is its diversity, and that also applies to the US car market,” said Erin Keatingsenior analyst at Cox Automotive. “There are a lot of expensive, high-end vehicles on the market, but consumers have a lot of good options that are well below the industry average. That’s what we hear all the time from the major dealers: Regardless of the budget, there’s a good chance we can make something happen. This is especially true when inventories are higher and incentives follow.”
Incentives increase
Average incentives increased to 7.0% of the average transaction price in July – 3,383 USD – up from 6.4% in June and the most generous level in 2024. Incentives are now 59.1% higher than a year ago, when the average incentive package was 4.4% of ATP July 2023Incentives for new cars reached their highest level in over three years in July.
Almost all major brands – with the exception of Ram – had higher incentive levels in July compared to a year ago, with the highest incentive spending at volume automakers Infiniti, Volkswagen, Audi and Nissan. Surprisingly, incentive spending at Stellantis’ core brands – Chrysler, Dodge, Jeep and Ram – remains below the industry average despite industry-leading inventory levels.
“Not every brand has extremely high supply, but in most cases where there is excess supply, incentives are increasing,” Keating added. “The higher incentives are helping consumers, but stubbornly high interest rates and tighter credit conditions continue to make it difficult to afford these products. If we want the market to reach its potential, interest rates need to come down and lending needs to become looser.”
Incentives for electric cars increase, prices remain stable
The average transaction price for an electric vehicle in July was 56,520 USDwas higher than in June, but 1.5% lower year-on-year. The average incentive package offered with a new electric vehicle in July was over 12% of the transaction price, the highest level in more than three years and about double the level in July 2023 as typical incentive packages were equivalent to 6.0% of ATP. July EV incentives were 73% above the industry average.
Average transaction prices at Tesla continue to rise after falling to the industry average in 2017. December 2023In July, Tesla ATPs were 59,593 USDan increase of 11% compared to the previous year and the highest level since February 2023. The success of the popular new Cybertruck is likely to drive up Tesla prices, although prices for the volume products Model 3 and Model Y have risen steadily throughout the year. In July, the ATP for the Model Y was 52,055 USDan increase of 5% compared to January, while the Model 3 $53,878a remarkable increase of 30% from January, when the Model 3 ATPs 41,531 USDThe Model Y and Model 3 are the best-selling electric vehicles in the US market.
Data tables are available for download.
About Kelley Blue Book
Kelley Blue Book was founded in 1926 and The trusted resource®has been the source of vehicle valuations and information trusted by both consumers and the automotive industry for nearly a century. As the industry standard for generations, Kelley Blue Book provides transparent, objective information and data-driven, innovative tools for consumers, auto dealers and manufacturers. Kelley Blue Book publishes millions of fair market values weekly on its world-class website, KBB.com, from its famous Blue Book® Kelley Blue Book Trade-In Values® Price Advisor tool that provides a range of what consumers in their area can reasonably expect to pay for a car. KBB.com editors rate and review hundreds of new vehicles each year to help consumers find the best cars and best SUVs to meet their needs. Kelley Blue BookSM Instant Cash Offer provides a redeemable trade-in offer to consumers ready to transact and conveniently connects them with participating dealers in their area. Kelley Blue Book’s Service Advisor provides guidance on how much to pay for service and repairs and allows consumers to schedule service appointments at local dealers on KBB.com. Kelley Blue Book also provides vehicle appraisals for finance and insurance companies and government agencies. Kelley Blue Book is a brand of Cox Automotive.
About Cox Automotive
Cox Automotive is the world’s largest provider of services and technology to the automotive industry. Powered by the largest volume of first-party data derived from 2.3 billion online interactions per year, Cox Automotive provides customized solutions for car buyers, automakers, dealers, lenders and fleets. The company employs more than 29,000 people across five continents and has a portfolio of industry-leading brands, including Autotrader®Kelley Blue Book®Mannheim®vCar®Dealer track®NextGear Capital™, Central Dispatch® and FleetNet America®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately held Atlanta-based company with annual revenues of $22 billion. Visit coxautoinc.com or connect through @CoxAutomotive on X, CoxAutoInc on Facebook or Cox-Automotive-Inc on LinkedIn.
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