INFLUENCED MOSTLY BY TESLA PRICE CUTS, AVERAGE NEW-VEHICLE PRICES STAY VIRTUALLY FLAT YEAR OVER YEAR
The average price Americans paid for a new vehicle in August 2023 was virtually flat year over year due to higher inventory levels and increased incentives. Kelley Blue Book reports that the average transaction price (ATP) of a new vehicle in August was $48,451, up only $42 from one year ago. Prices increased slightly by 0.6% ($286) compared to July’s revised ATP of $48,165. Since the start of the year, transaction prices are down 2.4%, or $1,212, the largest decrease in the past decade. In August, manufacturers’ incentives averaged $2,365, reaching the highest point in a year. This increase brought incentives to 4.9% of ATP, which is still historically low.
Electric vehicle (EV) prices continue to fall, with Tesla leading the way. In August, the average price paid for an EV was $53,376, lower than the previous month and significantly less than a year ago when an EV cost more than $65,000. Incentives for EVs in August were 8.1% of the average transaction price, or $4,298.
Read the Data Point for pricing and incentive details on non-luxury, luxury and electric vehicles.