New car prices in the US decreased
Huge promotions from dealers to consumers have caused new car prices in the US to end their upward trend after a decade.
In November, the average transaction price (ATP – Average Transaction Price) for a new car in the US market was 48,247 USD, less than 1% higher than in October, but down 1.5% compared to the same period. period last year, according to data from Cox Automotive.
The ATP level for consumers was only 98.3% of the suggested retail price (MSRP – Manufacturer’s Suggested Retail Price) in November, the lowest level since April 2021.
To explain this, Cox Automotive believes that dealers have launched more incentives and discounts for customers when the supply has become stable and there is no longer a shortage of vehicles. While suggested retail prices increased by an average of about 1% from 2022 to 2023, sales incentives increased to 5.2% of the vehicle’s average transaction price, the highest since 2021, This means customers get more discounts when buying a new car.
On the other hand, the average selling price of new luxury vehicles fell 7.5% last month compared to the same period last year. Incentives for this vehicle line account for 5.8% of ATP, helping sales increase by 19.6% after just one year.
In addition, sales incentives are also helping electric vehicle prices move closer to the price of internal combustion engine vehicles. Specifically, dealer sales incentives for electric vehicles amounted to 8.9% of their ATP in November, the highest level in 2023. Therefore, on average electric vehicles cost about 8.5% more than other vehicles.
Meanwhile, in November, ATP for popular vehicles only decreased by 0.3% compared to the same period last year. Sales also grew, at a lower growth rate than the luxury car market. This may be partly because the discount incentives for popular cars are only 5% ATP, slightly lower than the luxury car market, less than half of the previous incentives for popular cars. during the Covid-19 pandemic.