Incentives were up by half a percentage point in October to 7.7% of the ATP, a more than 60% year-over-year increase.
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Though new-vehicle incentives kept climbing in October as automakers aimed to move 2024 models in the last months of the year, vehicle transaction prices barely budged.
Cox Automotive data show the average transaction price was $48,623, essentially flat month-over-month and up about 2% year-over-year. It observed that the ATP has moved little for more than a year, though until last month there had been monthly year-over-year decreases throughout 2024.
Incentives got a half percentage point bump in October to 7.7% of the ATP, up more than 60% year-over-year, Cox said.
“While some automakers focus on managing production, many will likely maintain or even increase their seasonal incentives to attract buyers,” said Cox Executive Analyst Erin Keating in a press release.
“With competition intensifying, these strategies will be crucial in maintaining market share and driving end-of-year sales. Our team is generally optimistic for new-vehicle sales to close out the year – extra incentives will certainly help.”
Incentives have gradually increased for more than two years after bottoming out in the fall of 2022 due to pandemic-era vehicle supply limits, said Cox, which indicated that eight major automakers’ average incentive packages exceeded 10% of the ATP.
