Incentives offered for new-vehicle purchases increased last month amid inventory buildup, and ahead of 2024 sales close, according to vehicle valuation and information source Kelley Blue Book (KBB).
“For more than a year now, new-vehicle prices in the U.S. have remained mostly unchanged and near $48,500, as higher inventory levels continue to hold downward pressure on the market,” said a Nov. 12 KBB statement. The trend continued in October, with the average transaction price (ATP) paid for a new vehicle being $48,623. Sales incentives were 7.7 percent of the ATP, up more than 60 percent from a year back as automaker competition heats up.
It is the “season for automakers to make their final push for 2024 sales,” said Cox Automotive executive analyst Erin Keating. “While some automakers focus on managing production, many will likely maintain or even increase their seasonal incentives to attract buyers. With competition intensifying, these strategies will be crucial in maintaining market share and driving end-of-year sales.”…