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According to Carscoops, new car prices in the US have remained almost the same as last year, but the value of incentives has improved significantly as automakers aim to clear inventory before the end of 2024.
Data from Kelley Blue Book shows that the average transaction price (ATP) of new cars in the US in October was 48,623 USD, slightly up from 48,423 USD in September, and not far off from 47,826 USD recorded in October 2023.
However, incentives for US car buyers have increased from 7.2% of ATP in September to 7.5%. While the change between the two most recent months is not significant, compared to the previous year, the value of incentives for US car buyers has increased by 60%.
This growth in incentive value has been ongoing for the past two years, according to Kelley Blue Book. Automakers are trying to recover from supply issues caused by the semiconductor crisis.
At present, some automakers are facing excess inventory, forcing them to either curb production or offer enhanced incentives to clear stock quickly.
“Some automakers are focusing on managing their production lines, while others are choosing to maintain or increase incentives to encourage car buyers. Our team is generally optimistic about new car sales in the final quarter due to these incentives,” said Erin Keating, Senior Analyst at Cox Automotive.
Recently, Ford confirmed that it would temporarily halt production of the F-150 Lightning from mid-November, with plans to restart the line at the Rogue Electric Vehicle Center in January next year.
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High inventory levels force automakers to increase incentives to clear stock quickly. Illustrative image: Ford. |
Kelley Blue Book data shows that up to eight automakers in the US offered average incentives of over 10% of new car ATP in October.
Chrysler, Dodge, Jeep, and Ram are offering higher-than-average incentives in the US. On the other hand, Porsche, Toyota, Land Rover, and Cadillac are offering lower-than-average incentives to US customers.
According to Kelley Blue Book, incentives for electric vehicle buyers are particularly high. The average incentive is 13.7% of ATP, double the 5.6% of ATP recorded a year ago.
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