New Cars Less Affordable
Slight incentives pullback pushes ATP to its highest of the year, but Cox expects them to resume along with inventory.
Inventory, which was flat for the month, is expected to resume its gradual rebuilding, and incentives will likely follow it, Cox said.
Pixabay/LuckyLife11
New-vehicle affordability waned in April as manufacturers took their feet off the incentive gas.
The average transaction price rose 2% to $48,510, according to Cox Automotive, which said that’s the highest ATP since December, though about flat, or a half percent, down from a year earlier.
April’s average incentive came in at 6.3% of the average transaction price, down just slightly from 6.6% in March for the first incentive drop since October, Cox said. It attributed the shift to a remove from automakers’ push for a strong finish to the first quarter.
Inventory, which was flat for the month, is expected to resume its gradual rebuilding, and incentives will likely follow it, said Executive Analyst Erin Keating.
New-vehicle sales fell month-over-month, in part due to fewer selling days, Cox said.
Luxury models helped pad the overall ATP as their transaction prices rose 2.4% month-over-month while their incentives fell more than 1%.
Originally posted on Auto Dealer Today
More Showroom
Affordable, Safe Cars for Teen Drivers
Families looking to balance affordability and safety in vehicles for their teen drivers can look to the updated list of recommended vehicles by IIHS and Consumer Reports.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
Holman Opens Porsche Dealership in Miami
The North Miami store features the brand’s signature Destination Porsche design concept, combining contemporary architecture and technology to create what the auto group calls an ultra-luxury experience.
Read More →
Chicago to Gain Cadillac Rooftop in 2027
The two-story Cadillac dealership is being constructed at the former Lincoln Yards site, owned and operated by Canada-based Jack Carter Auto Group.
Read More →
Mid-Atlantic Ford Store Has New Owner
A growing Maryland automotive group is only the 93-year-old dealership’s third owner after its longtime proprietors retired.
Read More →
Porsche Dealership Breaks Ground in Illinois
Barrington Porsche will be the new location for Murgado Automotive Group’s existing Porsche dealership currently in the Motor Werks of Barrington auto mall.
Read More →
Michigan Auto Group Acquires Ohio Rooftops
Feldman Automotive Group added two new brands, Honda and Toyota, to its portfolio with its latest acquisition of four Fireside dealerships in Ohio.
Read More →
California VW Dealers Go After Scout
The franchisees’ state-level actions follow a California auto dealers trade group lawsuit against the VW affiliate last year, both efforts to stop the EV maker’s plan to sell direct to consumers.
Read More →
EVs Gain Traction in Europe
First-quarter auto sales increased as more consumers took advantage of government incentives. Hybrid deliveries are leading the way on the electrifieds boom.
Read More →
California Holds EV Lead Despite Annual Decline
At nearly 14%, California had the lowest zero-emission vehicle market share in the first quarter since the fourth quarter of 2021, according to the California New Car Dealers Association.
Read More →