The average transaction price in October, according to J.D. Power, is forecast to be $45,599, a 2.7% increase year-over-year. However, this is only off $26 from September. The old economist’s adage that prices are sticky downward applies we think. Transaction price highs of +$46,000 were experienced during July and August.

Nonetheless, automaker discounts persist at record lows. Average incentive spending per unit, per Power, is forecast to total $882, which is down 44.7% from October 2021. This is the sixth straight month below $1000. The question is when do vehicles become un-affordable as the Federal Reserve is deliberately sending the economy into a recession to fight inflation, which the Fed caused by years of cheap monetary policy that mostly benefited the rich.