- Several brands reported significant increases in transaction prices over the past year.
- Cadillac saw explosive price increases in December, outpacing most other brands.
- Incentives remained steady in December, averaging 8% of average transaction prices.
The average transaction price (ATP) for new cars in the U.S. climbed close to record highs last month, largely fueled by a surge in luxury car sales to close out 2024. With consumer confidence seemingly buoyed by the post-election optimism, buyers flocked to dealerships, ready to spend. It will be interesting to see if this upward trend continues or takes a breather in 2025.
In December 2024, ATPs reached $49,740, marking a 1.5% bump from $49,010 in November 2024 and a significant rise (+3.4%) compared to $48,082 in December 2023. The industry-wide record still belongs to December 2022, when ATPs hit $49,958 as inventory levels started bouncing back from the pandemic’s historic lows.
Luxury Cars Take Center Stage
A major driver of December’s high ATPs was the spike in luxury vehicle sales. Typically, cars priced north of $80,000 make up 4.4% of monthly industry sales, according to Cox Automotive. Last month, they accounted for a hefty 5.6%, with roughly 84,000 luxury models sold. Meanwhile, full-size pickup trucks also pulled their weight, averaging $64,261 and further boosting overall ATPs.
Cadillac reported a huge jump in ATPs in December. In fact, the average price paid for a new Cadillac soared from $67,925 in November 2024 to $79,594. That’s a massive 17.2% month-over-month increase. Similarly, Cadillac’s year-over-year ATP has jumped by 12.8%.
Average Transaction Prices By Brand
Several other brands have experienced significant increases in prices. For example, Infiniti’s ATPs are up 4% month-over-month and 8.1% year-over-year. Tesla ATPs have also increased 10.5% from December 2023, despite supposed discounts for the soon-to-be replaced Model Y, but remained steady between November and December 2024.
While several luxury automakers celebrated rising prices, not everyone shared the spoils. For Mitsubishi, average prices plunged 12.7% year-over-year, Jeep fell 6.3%, and Buick saw a 7% decline. Chrysler and Dodge also posted year-over-year drops of 4.3% each.
Read: Average Used Car Price Is $25,565, Down Nearly 3% From 2023
Despite rising ATPs, incentives held steady at 8% of the average transaction price last month, equating to roughly $3,958. However, incentives were notably higher in specific segments, reaching 10% for entry-level luxury cars, 9.7% for compact SUVs, and 9.4% for luxury compact SUVs.
Automaker groups as a whole saw mixed results in December. General Motors led with a 3.1% month-over-month increase, bringing its ATP to $54,921, while Ford followed with a modest 0.3% rise to $57,134. On the other hand, Stellantis struggled, with its ATP slipping 0.4% monthly and 3.6% year-over-year to $54,822.
Cox Automotive’s executive analyst Erin Keating summed up the December sales spike, saying, “It was a December to remember, in terms of both sales volumes and prices. As we reported just after the election, consumer sentiment and confidence have been on the rise. Vehicles, especially luxury vehicles, are typically an emotional purchase, and when consumers are optimistic, they go shopping. Rates dipped for a short bit late in 2024, discounts were higher, and the glass was half full. No wonder we saw the lift in both prices and volume.”
Looking ahead, all eyes are on 2025 to see whether the ATP trend continues or finds its ceiling. With economic conditions in flux and a new administration settling into the White House, even the luxury market could face a reality check. For now, though, it seems shoppers are more than happy to treat themselves.
Average Transaction Prices By Group
