Kia’s average transaction price increased by $4,000, while Mercedes’ average transaction price increased by $4,000

If you thought car prices would eventually come down from their Everest-level anoxic highs, you’d be half right, but also wrong. The average transaction price (ATP) of a new car in the United States has risen steadily this year, rising 1.5%, or $699, from November 2023 to currently $48,724.

Read: Average new car sales price is $48,000, but buyers only want to spend $35,000

While this figure is down from the previous record of $49,926 in December 2022, it is still the highest recorded so far this year. Some brands are riding the wave of modest increases, but others, including Mercedes-Benz, are watching their prices drop faster than a novice skater.

Luxury and traditional brands fell sharply

In November last year, the average transaction price of new Mercedes-Benz models in the United States was $77,240, but last month this number plummeted to $69,444, a decrease of 10.2%. Things were even worse in October, with Mercedes-Benz’s ATP falling to $66,896. The German brand isn’t the only one facing these declines.

Volkswagen’s average transaction price (ATP) fell 6.2% in November compared with the same month last year and is now $35,872, according to Volkswagen AG data. Cox Automotive Report using data from Kelley Blue Book (KBB). Jaguar’s ATP also fell significantly, down 13.7% to $63,283, likely due to dealers slashing prices on older inventory. Other brands with significant declines include Dodge (-7.0%), Cadillac (-6.3%), Buick (-4.4%) and Mitsubishi (-3.8%).

Kia tops the list for price increases

Kia’s situation is completely different. Its average trading price jumped 12.6%, climbing from $35,005 in November 2023 to $39,423 last month, the largest increase of any automaker. Other brands also posted impressive gains, including Acura’s ATP up 7% to $54,012, Tesla’s ATP up 4.3% to $54,610, and Ford’s ATP up 3.8%. to $56,344.

Average transaction price of new cars

The cheapest and most expensive brands in November

Overall, Mitsubishi had the lowest ATP of all brands in the study in November at $29,733. It’s followed by Nissan at $34,031, Subaru at $34,804, and Buick at $34,995, all under the $35,000 mark. Meanwhile, at the other end of the pricing spectrum, Porsche dominates with an ATP of $115,703, followed by Land Rover at $97,687, BMW at $73,900 and Mercedes-Benz at $69,444.

A breakdown of the different car segments shows that ATP in the luxury car segment plunged 25.1% in the past 12 months, from $75,238 to $56,366. Meanwhile, the compact SUV segment accounts for nearly 20% of all new vehicle sales in the United States and remains the most popular and competitive category. There are more than 20 models, and the average price in November was $36,858, up 1% year over year but more than 30% below the industry average.

Other segments include subcompacts, with a November ATP of $22,377 (-11.1% year-over-year), full-size cars at $44,524 (-8.3%), full-size pickups at $64,530 (-1.0%), and sports cars at $46,327 USD (-9.8%).

ATP VS. Incentive expenditure (%)

Incentives

The data also showed that new car incentives averaged 8% of ATP in November, providing some relief to buyers dealing with high prices. Notably, 20 brands exceeded this average with 11 brands extending incentive spend to more than 10% of ATP. Brands offering the most aggressive discounts include Volkswagen, Ram, Audi and Nissan, underscoring how heavily some automakers rely on deals to move inventory and stay competitive in the market.

Segments with the lowest incentive spending last month included performance cars, compact cars and small and medium-sized pickup trucks. Among high-end models, luxury sedans, full-size pickup trucks and compact SUVs stand out, with incentives for the latter reaching 10.2% of ATP, according to the latest Kelley Blue Book report.

Discounts and demand drive sales growth

“In November, higher prices led to deeper discounts, which kept the retail business going,” said Erin Keating, executive analyst at Cox Automotive. “Pent-up demand and consumers in the wake of the national election Some improvements in confidence appear to be driving the market, and higher incentives will certainly help.”

“As luxury sales pick up towards the end of the year, transaction prices typically rise at the end of the year,” Keating explained. “If November sales are any indication, we think 2024 will be positive for the automotive industry. Yes, prices It’s rising year over year, but higher incentives and discounts are attracting buyers.”

U.S. average transaction price