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Kelley Blue Book data reported today shows that the average transaction price (ATP) for a new vehicle in the U.S. was $48,623 in October, up from September and higher than year-ago levels. Incentives increased again as many automakers try to clear their inventory. The electric vehicle ATP dropped month-over-month, but was higher year over year, with incentives at their highest level this year.
“’Tis the season for automakers to make their final push for 2024 sales,” said Cox Automotive Executive Analyst Erin Keating. “While some automakers focus on managing production, many will likely maintain or even increase their seasonal incentives to attract buyers. With competition intensifying, these strategies will be crucial in maintaining market share and driving end-of-year sales. Our team is generally optimistic for new-vehicle sales to close out the year – extra incentives will certainly help.”
The average transaction price (ATP) paid for a new vehicle in the U.S. in October was $48,623, according to new data from Kelley Blue Book, part of Cox Automotive.** Transaction prices last month were higher than the revised September price ($48,423) and higher by 1.7% from year-earlier levels ($47,826). For more than a year now, new-vehicle prices in the U.S. have remained mostly unchanged and near $48,500, as higher inventory levels continue to hold downward pressure on the market.
New-vehicle incentives have been climbing for more than two years after hitting a floor in the Fall of 2022. In October, eight mainstream automakers had average incentive packages above 10% of average transaction price, and all four of the Stellantis “domestic brands” – Chrysler, Dodge, Jeep and Ram – had incentive packages above the industry average, as the company works to clear inventory. Ram incentives were among the highest in the industry. Porsche, Toyota, Land Rover and Cadillac continue to have the lowest incentive spend.
Incentives Climb Higher in Major Market Segments.
Among the Big Three segments,* incentives were highest – averaging 9.4% of ATP – in the competitive compact SUV segment, where 25 different models are fighting for sales. The average transaction price for a new compact SUV was $36,769 in October, nearly 30% below the industry average. Full-size pickup truck incentives averaged 8.7% of ATP last month, while midsize SUVs had incentive packages averaging 8.0% of ATP. In the midsize SUV segment, 30 models are vying for attention, including some EV models, such as the new Honda Prologue and Chevrolet Blazer EV. In the midsize SUV segment, average transaction prices are average indeed: $48,977 in October, within 1% of the industry average.
EV Transaction Prices
Electric vehicle ATPs, at $56,902 in October, were lower than the revised September estimate of $57,580. Year over year, EV prices were higher by 0.9%, and compared to the industry average, electric vehicle ATPs in October were higher by just more than 14%, roughly in line with the premium paid one year ago.
EV incentives in October, however, were much higher than one year ago, helping make electric vehicles more affordable for consumers. The average incentive package offered on an EV, including estimates for government incentives when applicable, was 13.7% of ATP, up from a revised 11.6% in September and well more than double the level seen one year ago when incentives were 5.6% of ATP. EV incentives have been elevated throughout 2024, according to Kelley Blue Book data, averaging nearly 11% of ATP, well above industry average.
*Big Three Segments
- In the U.S. market, the top three vehicle segments routinely account for more than 45% of all vehicle sales, according to Kelley Blue Book analysis. However, Full-size pickup trucks, where sales have been relatively soft in 2024, saw year-over-year ATPs lower in October by 1.3% at $65,389, down from $66,256 in October 2023.
- ATPs for compact SUVs were mostly flat year over year. The average transaction price for a new compact SUV was $36,769 in October, nearly 30% below the industry average.
- The mid-size SUV segment where 30 models are vying for attention, including some EV models, such as the new Honda Prologue and Chevrolet Blazer EV average transaction prices are at $48,977 in October, within 1% of the industry average.
EVs
Electric vehicle ATPs, at $56,902 in October, were lower than the revised September estimate of $57,580. Year over year, EV prices were higher by 0.9%, and compared to the industry average, electric vehicle ATPs in October were higher by just more than 14%, roughly in line with the premium paid one year ago.
EV incentives in October, however, were much higher than one year ago, helping make electric vehicles more affordable for consumers. The average incentive package offered on an EV, including estimates for government incentives when applicable, was 13.7% of ATP, up from a revised 11.6% in September and well more than double the level seen one year ago when incentives were 5.6% of ATP. EV incentives have been elevated throughout 2024, according to Kelley Blue Book data, averaging nearly 11% of ATP, well above industry average.
The average transaction price for a new Tesla – the industry’s EV leader – declined in October from September to $56,705, according to an initial estimate, but was higher year-over-year by more than 10%. Lower month-over-month Tesla prices in October were likely influenced by a drop in Cybertruck ATPs, which fell below $100,000 for the first time since launch. In October, the Cybertruck ATP was $98,495. Sales were also lower, dropping to 4254, the lowest total since June.
**Cox Automotive
Cox Automotive says it is the world’s largest automotive services and technology provider. Fueled by the largest breadth of first-party data fed by 2.3 billion online interactions a year, Cox Automotive tailors leading solutions for car shoppers, automakers, dealers, retailers, lenders, and fleet owners. The company has 25,000-plus employees on five continents and a family of trusted brands that includes Autotrader®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital™, and vAuto®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately owned, Atlanta-based company with $22 billion in annual revenue. Visit coxautoinc.com or connect via @CoxAutomotive on X, CoxAutoInc on Facebook, or Cox-Automotive-Inc on LinkedIn.
On Sale? New Vehicle Incentives Rise in October
Click for more sales.
Kelley Blue Book data reported today shows that the average transaction price (ATP) for a new vehicle in the U.S. was $48,623 in October, up from September and higher than year-ago levels. Incentives increased again as many automakers try to clear their inventory. The electric vehicle ATP dropped month-over-month, but was higher year over year, with incentives at their highest level this year.
“’Tis the season for automakers to make their final push for 2024 sales,” said Cox Automotive Executive Analyst Erin Keating. “While some automakers focus on managing production, many will likely maintain or even increase their seasonal incentives to attract buyers. With competition intensifying, these strategies will be crucial in maintaining market share and driving end-of-year sales. Our team is generally optimistic for new-vehicle sales to close out the year – extra incentives will certainly help.”
The average transaction price (ATP) paid for a new vehicle in the U.S. in October was $48,623, according to new data from Kelley Blue Book, part of Cox Automotive.** Transaction prices last month were higher than the revised September price ($48,423) and higher by 1.7% from year-earlier levels ($47,826). For more than a year now, new-vehicle prices in the U.S. have remained mostly unchanged and near $48,500, as higher inventory levels continue to hold downward pressure on the market.
New-vehicle incentives have been climbing for more than two years after hitting a floor in the Fall of 2022. In October, eight mainstream automakers had average incentive packages above 10% of average transaction price, and all four of the Stellantis “domestic brands” – Chrysler, Dodge, Jeep and Ram – had incentive packages above the industry average, as the company works to clear inventory. Ram incentives were among the highest in the industry. Porsche, Toyota, Land Rover and Cadillac continue to have the lowest incentive spend.
Incentives Climb Higher in Major Market Segments.
Among the Big Three segments,* incentives were highest – averaging 9.4% of ATP – in the competitive compact SUV segment, where 25 different models are fighting for sales. The average transaction price for a new compact SUV was $36,769 in October, nearly 30% below the industry average. Full-size pickup truck incentives averaged 8.7% of ATP last month, while midsize SUVs had incentive packages averaging 8.0% of ATP. In the midsize SUV segment, 30 models are vying for attention, including some EV models, such as the new Honda Prologue and Chevrolet Blazer EV. In the midsize SUV segment, average transaction prices are average indeed: $48,977 in October, within 1% of the industry average.
EV Transaction Prices
Electric vehicle ATPs, at $56,902 in October, were lower than the revised September estimate of $57,580. Year over year, EV prices were higher by 0.9%, and compared to the industry average, electric vehicle ATPs in October were higher by just more than 14%, roughly in line with the premium paid one year ago.
EV incentives in October, however, were much higher than one year ago, helping make electric vehicles more affordable for consumers. The average incentive package offered on an EV, including estimates for government incentives when applicable, was 13.7% of ATP, up from a revised 11.6% in September and well more than double the level seen one year ago when incentives were 5.6% of ATP. EV incentives have been elevated throughout 2024, according to Kelley Blue Book data, averaging nearly 11% of ATP, well above industry average.
*Big Three Segments
EVs
Electric vehicle ATPs, at $56,902 in October, were lower than the revised September estimate of $57,580. Year over year, EV prices were higher by 0.9%, and compared to the industry average, electric vehicle ATPs in October were higher by just more than 14%, roughly in line with the premium paid one year ago.
EV incentives in October, however, were much higher than one year ago, helping make electric vehicles more affordable for consumers. The average incentive package offered on an EV, including estimates for government incentives when applicable, was 13.7% of ATP, up from a revised 11.6% in September and well more than double the level seen one year ago when incentives were 5.6% of ATP. EV incentives have been elevated throughout 2024, according to Kelley Blue Book data, averaging nearly 11% of ATP, well above industry average.
The average transaction price for a new Tesla – the industry’s EV leader – declined in October from September to $56,705, according to an initial estimate, but was higher year-over-year by more than 10%. Lower month-over-month Tesla prices in October were likely influenced by a drop in Cybertruck ATPs, which fell below $100,000 for the first time since launch. In October, the Cybertruck ATP was $98,495. Sales were also lower, dropping to 4254, the lowest total since June.
**Cox Automotive
Cox Automotive says it is the world’s largest automotive services and technology provider. Fueled by the largest breadth of first-party data fed by 2.3 billion online interactions a year, Cox Automotive tailors leading solutions for car shoppers, automakers, dealers, retailers, lenders, and fleet owners. The company has 25,000-plus employees on five continents and a family of trusted brands that includes Autotrader®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital™, and vAuto®. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately owned, Atlanta-based company with $22 billion in annual revenue. Visit coxautoinc.com or connect via @CoxAutomotive on X, CoxAutoInc on Facebook, or Cox-Automotive-Inc on LinkedIn.