Home Forums Hunting & Shooting Hunter's Campfire Average new car price in October. Down.

Down 0.7%. Led by drops in EV prices of 22%, or $14K per car. The decline in luxury vehicle prices the highest in a decade.

Turns out, the whole "law of demand and supply" thing is still working. The automakers squeezed everything they could out of the "supply chain shortage" and it looks like the consumer is having a turn at the upper hand.

https://mediaroom.kbb.com/2023-10-11-New-Vehicle-Transaction-Prices-Decline-Further-in-September,-Led-by-Price-Cuts-at-Tesla,-According-to-Kelley-Blue-Book-Report

The average transaction price (ATP) for a new vehicle in September 2023 was $47,899, a 0.7% decline year over year; ATPs are down 3.4% from January as incentives continue to increase.

Tesla's price cuts have moved the market, pushing electric vehicle (EV) prices down more than 22% year over year, from $65,295 to $50,683.

The average price Americans paid for a new vehicle in September 2023 was down 3.4% from the start of the year, as higher inventory levels and increased incentives continued to put downward pressure on pricing. The average transaction price of a new vehicle in September was $47,899, down $360 from one year ago (0.7%), according to Kelley Blue Book, a Cox Automotive company. Prices decreased by $227 (0.5%) from August's downwardly revised ATP of $48,126.

"After new-vehicle prices peaked at nearly $50,000 at the start of 2023, we're seeing average transaction prices dip below $48,000 for the first time in more than a year," said Rebecca Rydzewski, research manager at Cox Automotive. "Dealers and automakers are feeling price pressure, and with auto loan rates at record highs and growing inventory levels, new-vehicle prices continue to ease. Assuming the UAW strike is short-lived, current inventory levels are healthy enough to prevent any significant impact on consumer prices."

With the UAW strike entering its fourth week and General Motors' inventory levels far below Ford Motor Company and Stellantis, Detroit's largest automaker slashed incentives on all four of its major brands in September. General Motors' average incentive as a percentage of transaction price was 4.0%, down from 4.7% in August and below the industry average of 4.9%. Both Ford and Stellantis, which have inventory levels well above the industry average, saw average incentive packages increase month over month in September to 5.2% and 7.3%, respectively. GM and Stellantis posted higher ATPs month over month in September, while Ford ATPs declined less than 1%, aligned with the industry average.

Non-Luxury Vehicle Prices Increase Less Than 1% Year Over Year
The average price paid for a new non-luxury vehicle in September was $44,626, an increase of 1% from one year ago. Compared to last month, non-luxury prices were down $82. The average incentive spend in the non-luxury segment was 4.7% of ATP in September, up from 2.3% one year ago. Month over month, incentive spending was flat.

Only three vehicle segments had average transaction prices below $30,000 in August – compact cars, subcompact cars and subcompact SUVs. All three segments saw month-over-month price increases. Last month's lowest-priced vehicles in the U.S. market were the Mitsubishi Mirage and Kia Rio—the final two vehicles still transacting under $20,000—and are expected to be discontinued in the coming years as the market shifts away from sedans.

Average Luxury Prices Down Year Over Year, Largest Decline in a Decade
Luxury vehicle prices in September decreased by $873 compared to August. Luxury transaction prices were down 6.2% year over year to $62,342. Since the start of 2023, luxury prices have declined by almost 7%. Overall, the luxury segment continued to deliver strong results in September, holding an 18.5% share of the U.S. market.

Luxury price declines in 2023 are primarily driven by aggressive price cuts at Tesla, the luxury market leader. Compared to September 2022, Tesla transaction prices are down 24.7%; Tesla Model 3 prices are down more than 26% year over year to $41,484, well below the average luxury car price. Tesla average transaction prices are now lower than Acura, Lexus, Infiniti and Volvo.

Tesla's price cuts have offset price gains by many luxury automakers. Audi, Mercedes, and Porsche all booked year-over-year price increases in September, with Mercedes ATPs up more than 10%. Audi and Porsche posted a year-over-year increase of more than 8%. BMW, Cadillac, Infiniti, Land Rover, and Lexus also posted price increases. Brands with year-over-year price declines in September included Buick, Jaguar and Volvo.

Luxury vehicle incentives have significantly increased year over year, rising from an estimated 1.7% of ATP a year ago to 5.7% last month. Luxury vehicle sales in September were up 19% year over year, helping to push overall industry volume higher by more than 18%. During the same timeframe, non-luxury sales were higher by 17%.

Electric Vehicle Prices Continue to Decline
EV prices continue to fall, led again by market leader Tesla. In September, the average price paid for an electric vehicle was $50,683, down from $52,212 in August and down from more than $65,000 one year ago. Incentives for EVs in September were 9.8% of ATP, or $4,991.

At the start of October, EV availability, as measured by days' supply, was well above the industry average as product availability and EV production rapidly increases. EV and internal combustion engine (ICE) inventory started the year off at about 52 days' supply. Since then, EV days' supply dramatically increased while ICE remained consistent between 52 and 58 days. EV supply at the start of October was 97 days, down from the peak inventory of around 111 days during early July.

"EV sales continue to grow in the U.S., partly due to strong supply and more choice," said Stephanie Valdez-Streaty, director of Industry Insights at Cox Automotive. "At last check, we had 15 new EV models for sale that were not available a year earlier. Better choices and more options are helping push prices lower and drive higher sales."

Auto Incentives Offered by Manufacturers Reach 24-Month High
Incentives averaged $2,368 in September, the highest point in the last 24 months and at 4.9% of ATP. While September incentives were essentially flat month over month, they remain historically low. For comparison, Kelley Blue Book estimates incentives averaged 10% of ATP in September 2020 and 10.2% in September 2019.

The high-end luxury car segment had the highest incentives in September 2023 at 10.6% of ATP, followed by electric vehicles at 9.8%, luxury cars at 7.4%, entry-level luxury cars at 7.1% and full-size pickup trucks at 6%. Vans, high-performance cars, and small and midsize pickup trucks had some of the lowest incentives in September.

The EVs are breaking sales records according to the WSJ.

48K for an average new car price. I have never paid more than 26K for a new one. How the hell do people afford that, especially at 6+% interest rates.

I'll continue to drive my old well seasoned Toyota SUV's

Three of 'em

700K miles on the three of 'em

Seafire can top that

New cars/trucks are stupid expensive

FJB..........

This

Just wait for the UAW strike premium in 2 years...

Most I've ever paid......new 2002

Right at $32K OTD for this Chebby 2500HD gasser

Pampered/well maintained......sleeping in the heated garage w/141K miles

Same truck today ? prob x2 $$

No thanx

The elephant in the room is that during the Covidiocy the car makers built the most optioned out, blinged up, dolled up vehicles they could build to boost margins, and then the dealers piled on their "market adjustment" for good measure.

Love 'm or hate them, the current oversupply of EV's is taking away the ICE manufacturer's ability to dictate price, and that, in turn, is taking negotiating power away from the UAW.

That whole strike mess is just going to accelerate the demise of the auto assembly industry in the Northern states and California.

Market adjustment- ROTF

Helen Keller even knew buying a new car the last 24 months was stupid.

Just buy used.........

This makes my nipples hard

https://cars.ksl.com/listing/8504738

I've been wondering what's keeping the economy rolling and people going for several years.

With the average American being a Debt Saddled Broke Ass, the inflated cost of everything has to be overstepping their available funds. Credit is the easy answer, but that has end sometime.

Interest rate is irrelevant if you're paying cash.

Then again, I suspect that less than 5% of all new car buyers even realize there's a price not just a payment, lol.

How many even know that cash is undesirable.
Dealers don't want it, and try like heck to get you to finance.
I've been setting there with the back check in my pocket, closing out the deal, and they are still trying to hook me into a loan.

When loans were in the sub 2% range, there was no real reason to pay cash. You could easily return better than 2% by investing that money.

We don't owe nobody nothing.
And that has significant value to us.




(Several Wannabe English Teachers just exploded!)

I hope the prices keep dropping. I gotta buy a new one next year and one the year after that and that's if things go according to plan, God willing and the creek don't rise and none of my ladies drive into that creek and kill their car.

That is a great place to be for many, for some not so.

I have the cash for a new 4runner, but the dealers want goofy markups. So they can keep their lifetime wax and tire protection.
I saw they are discounting Limited 4Runner by a few thousand, so I guess they are losing sales. Not the model I want, and they are not discounting TRD models.

Depends on the debt!



We owe $100k on a house we bought last year.

It's about half paid off. Not a bad deal. Pay it off in a couple more years and then it'll be time for new siding, this that or whatever on the money pit...lol



Now if we owed $100k on a new boat and/or SUV I'd be feeling a little more nervous.




Our local Ford just got in a new Explorer Limited, $52k. We'll keep our 2011 version with 35k miles thank you very much!