Meanwhile, the ATP for a new Buick vehicle rose 4.2 percent on a month-over-month basis, increasing from a November 2023 ATP of $37,232 per vehicle, according to a report from Cox Automotive and Kelley Blue Book.
This decline in Buick ATP figures is reflected by a similar year-over-year drop in transaction prices for parent company General Motors. When including all four of GM’s U.S.-market brands in the calculations – Chevy, Buick, Cadillac and GMC – the ATP for a new GM vehicle was $53,530 in December 2023. This represents a 0.3 percent drop when compared to December 2022 numbers, but a 1.7 percent increase month-over-month from $52,621 per vehicle in November 2023.
As a whole, the auto industry recorded a 2.4 percent decrease in ATP figures year-over-year to $48,759 in December 2023. In contrast, ATP figures were up 1.3 percent on a month-over-month basis, where vehicles were selling for an average of $48,130 in November 2023.
“When we look at price strength, the pandemic created a seller’s market in which new vehicles were transacting above manufacturers’ suggested retail price in 2022,” Cox Automotive Executive Analyst Michelle Krebs stated. “That market is all but gone now, as higher inventory has led to higher incentives and discounts – lower margins for dealers – and vehicles are now typically selling for under MSRP. The shift from a seller’s market to a buyer’s market is well under way.”
The report identifies multiple factors for this fluctuation of ATP figures in December 2023, including luxury vehicle prices remaining stable, non-luxury vehicle prices slightly increasing, and electric vehicle prices dropping almost 18 percent from January 2023. That being said, incentives are on the rise, coming in at 5.5 percent of the ATP. Notably, this is the highest it’s been since August 2021.
“2023 was a milestone year with 1,189,051 pure battery electric vehicles sold, accounting for 7.6 percent of all new-vehicle sales,” Cox Automotive industry Insights Director Stephanie Valdez Streaty added. “Last year’s main story was Tesla price cuts that shook up the market and challenged the profitability picture for all automakers. Tesla is by far the dominant force in electric vehicles – when they cut prices, everyone takes notice.”