In July, Tesla volume reached a record high of 59,813 units. According to Kelley Blue Book estimates, the lower prices at Tesla are likely helping with sales volume. market was 19.3% in July, the highest share so far in 2023. Overall, the luxury segment continued to deliver strong results in July. According to Kelley Blue Book estimates, the average Tesla buyer spent $54,660 for a new vehicle in July, down from more than $62,000 in January and the lowest ATP for Tesla since April 2020. Luxury market leader Tesla has slashed prices by more than 19% in the past year, and from the start of the year, prices are down more than 12% 1. Since the start of the year, luxury prices have declined by more than 5%. The average luxury buyer paid $63,552 in July, down $192 from June. Luxury vehicle prices in July were down almost 3% year over year. Average Luxury Prices Down Year Over Year, Largest Decline in a Decade Mainstream brands with particularly tight inventory – Honda, Kia and Toyota – raised their incentive spending in July but were still below the industry average.
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The average incentive spend in the non-luxury segment was 4.3% of ATP in July, up from 2.5% one year ago. In comparison, five years ago, in the summer of 2018, there were only 12 vehicles in the over $100,000 category. Notably, and in stark contrast to the under $20,000 category, there were 32 vehicles in the Kelley Blue Book database transacting on average over $100,000 in July, which excludes super exotics from Ferrari, Lamborghini, Rolls-Royce and the like. In comparison, many of today’s smallest vehicles, including the Hyundai Venue, Kia Rio, Nissan Versa and Toyota Corolla, are all transacting well over $20,000. In July 2018, there were a dozen vehicles with ATPs below the $20,000 barrier. The Mitsubishi Mirage’s average transaction price in July is reported as $19,205. The bigger story is that unlike five years ago, only one model transacted below $20,000 in July. However, non-luxury vehicle prices have held remarkably steady since January, fluctuating up and down by only a few hundred dollars. Year over year, non-luxury prices increased by only 0.5%. The average price paid for a new, non-luxury vehicle in July was $44,700, down $471 compared to June. Average Prices for Non-Luxury Vehicles Decreased in July
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One year ago, average incentive spending was 2.4% of ATP. With higher inventories and higher incentives helping to keep downward pressure on prices, there certainly are good reasons for shoppers to be heading back into the market.”Īuto manufacturers’ incentive spend increased for the tenth consecutive month in July to the highest level since October 2021, averaging $2,148, or 4.4% of the average transaction price. “New-vehicle prices, primarily driven by cuts in luxury and electric vehicles, are decreasing as inventory is steadily improving. “New-vehicle price inflation has all but disappeared in 2023,” said Rebecca Rydzewski, research manager at Cox Automotive.