New Vehicle Transaction Prices, Discounts Continue to Increase
SANTA MONICA, Calif. — The Edmunds Price Index for new vehicles increased slightly, from 98.6 in June to 98.7 in July, reported Edmunds.com, while the average discount from MSRP was a record $4,982, or 16.8 percent.
SANTA MONICA, Calif. — The Edmunds Price Index for new vehicles increased slightly, from 98.6 in June to 98.7 in July, reported Edmunds.com, while the average discount from MSRP was a record $4,982, or 16.8 percent.
In July, the sales-weighted average new vehicle sticker price was $29,746, $525 higher than in June 2004 and $756 higher than in July 2003. The sales-weighted average net price, which is transaction price less incentives, was $24,764, $263 higher than in June 2004 and $585 higher than in July 2003.
"New models are being introduced at higher price points, but the competitiveness of the market is dramatically pushing down net prices, resulting in a record average discount," said Dr. Jane Liu, vice president of data analysis for Edmunds.com.
In July, minivans saw the largest increase in their price index at 1.7 percent, followed by large cars at 1.1 percent and compact cars at 0.6 percent.
"Recent sales have been particularly strong for minivans and compact cars, even considering that summer is typically their high-volume sales season," said Liu.
All SUV segments — including luxury SUVs, which traditionally have been immune to the issues affecting SUV popularity — experienced record-setting discounts in July.
More F&I

Modern Technology Objection Handling
In this video, Trent White shares how to confidently handle technology-based objections by helping customers understand the value of protection, even with modern vehicle technology.
Read More →
Consistency at Scale: Driving F&I Performance
With 75 rooftops across the Sunshine State, Morgan Auto Group has proven to Floridians that it knows a thing or two about driving performance in a competitive market. But it didn’t start at the top.
Read More →
Gitty Up on GAP
The foundational finance-and-insurance product hasn’t kept up with the latest conditions for auto dealers. Is the time ripe?
Read More →
How AI-Powered Coaching Is Transforming F&I Performance
See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability
Read More →
Sell Value, Build Trust
In this video, Trent White explains why selling on value, not fear, builds lasting customer trust, reduces cancellations, and drives long-term success.
Read More →
F&I Sales Give Dealers First-Half Lift
Product business shored up total profits to avoid an overall revenue tanking as product penetrations held steady, StoneEagle reported.
Read More →
Targeted Training Drives Results
Today’s technology, instead of threatening F&I managers, can actually make them better, according to an industry veteran who’s watched market setbacks roil the unprepared.
Read More →
Double the Change, Double the Chance
When an F&I manager gets a customer refusal, it’s a wise move to tweak more than one thing in the product offering.
Read More →
Just Do It
F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →