New Cars Less Affordable

Slight incentives pullback pushes ATP to its highest of the year, but Cox expects them to resume along with inventory.

May 15, 2024

New Cars Less Affordable — **Inventory, which was flat for the month, is expected to resume its gradual rebuilding, and incentives will likely follow it, Cox said.**
Credit:
*Pixabay/LuckyLife11*

1 min to read

New-vehicle affordability waned in April as manufacturers took their feet off the incentive gas.

The average transaction price rose 2% to $48,510, according to Cox Automotive, which said that’s the highest ATP since December, though about flat, or a half percent, down from a year earlier.

April’s average incentive came in at 6.3% of the average transaction price, down just slightly from 6.6% in March for the first incentive drop since October, Cox said. It attributed the shift to a remove from automakers’ push for a strong finish to the first quarter.

Inventory, which was flat for the month, is expected to resume its gradual rebuilding, and incentives will likely follow it, said Executive Analyst Erin Keating.

New-vehicle sales fell month-over-month, in part due to fewer selling days, Cox said.

Luxury models helped pad the overall ATP as their transaction prices rose 2.4% month-over-month while their incentives fell more than 1%.

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Topics:affordability New Vehicle Prices Cox Automotive Dealer Ops

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