New-Vehicle Price Drops Continue
Despite that and rising incentives, conditions still challenging for consumers.

Inventory stood at 2.9 million units as July opened, up 52% year-over-year.
Pexels/InstaWalli
U.S. new-vehicle prices continued their descent from pandemic-era heights in July for what Cox Automotive observed to be the 10th straight month of decreases.
It put the average transaction price at $48,401, essentially flat month-over-month and down 3% from the peak Cox observed to be in December 2022, when it was a couple of hairs under $50,000.
Of course, the descent is courtesy of revived inventory, which stood at 2.9 million units as the month opened, up 52% year-over-year.
Despite incentives being up 59% year-over-year – the average was up to 7% of the average transaction price, the highest of the year so far – consumers are challenged by still-elevated interest rates, said Cox. It noted just one model on the market with an average transaction price under $20,000: the compact Mitsubishi Mirage, which will be discontinued after this year.
ATPs keep rising in part due to the popularity of expensive pickups, which Cox said made up 14% of July sales, though their ATP was a whopping $65,713. It said incentives for full-size trucks, at 8%, were higher than the industry average.
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