The average transaction price (ATP) for new vehicles sold in the United States in April fell slightly from March and for the second consecutive month, it remains below the average manufacturer’s suggested retail price.
Data from Kelley Blue Book reveals that the ATP of new vehicles sold in the U.S. last month fell 0.03% from March to $48,275. While only a small decrease, figures from March and April represent a reversal from the previous 20 months where new vehicle ATPs were holding above the average MSRP.
More specifically, the ATP in April was $378 below the average sticker price whereas in April 2022, it was $600 above sticker, representing a piece of good news for those shopping for a new car.
Kelley Blue Book’s data reveals that the ATP for non-luxury vehicles last month was $44,750. Interestingly, this is a $461 increase from March 2023 and a 5.2% increase year-over-year but remained $381 below the average MSRP. It was a different story for luxury vehicle buyers where the ATP dropped by $1,605 from March 2023 to $64,144 last month. This is also the first time the ATP for luxury vehicles dropped below $65,000 in 11 months.
The average price paid for a new electric vehicle fell even more considerably. The ATP of new EVs sold in April was $55,089. That is a 7.5% decrease or $4,464 less than in March and a huge $10,096 less than in April 2022.
Read: Average New Car Transaction Prices Drop Below MSRP For The First Time In Nearly 2 Years
“New-vehicle transaction prices are trending downward in 2023, which should feel like a breath of fresh air to buyers following the last few years of low supply and rapidly rising prices,” Cox Automotive research manager of Economic and Industry Insights, Rebecca Rydzewski said. “Now that inventory levels are starting to climb and manufacturers are increasing incentives, the market will respond accordingly. High auto loan interest rates are still a major issue for many buyers, but inventory and price trends are a positive in the market right now.”
The increased supply of new vehicles has also allowed car manufacturers to up incentives. Kelley Blue Book has revealed that incentives averaged $1,714 in April, a $170 increase over March and representing 3.6% of the average transaction price.
