According to the latest data from Kelley Blue Book (KBB), new-vehicle prices in November climbed by 1.5% year-over-year reaching an average transaction price (ATP) of $48,724. Despite the higher prices, sales remain strong due to strong incentives that have kept the retail market active. Executive Analyst Erin Keating at Cox Automotive highlights that pent-up consumer demand and a surge in consumer confidence post-election are also driving the market.
The November ATP of $48,724 is the highest point of 2024, up 2.3% since January. It’s also a $699 increase from November 2023, and $720 higher than October 2024.
Despite the higher prices, sales surpassed 1.36 million units last month, with a seasonally adjusted annual rate (SR) of 16.5 million, the strongest sales pace since spring 2021. Pent-up demand, improved consumer confidence, and favorable inventory levels–above 3 million units for the first time since 2020–contributed to these sales.
Incentives in November averaged 8% of ATP, up 78% to October and 5.3% year-over-year. These higher incentives, approximately $1,300 more than last year, contributed to consumer affordability and boosted sales despite rising prices.
Incentives varied across the automakers, with brands like Porsche, Land Rover, Toyota, and GMC posting incentives that were lower than the industry average. Meanwhile, brands like Volkswagen, Ram, Audi, and Nissan were more generous with above-average incentives, with some exceeding 10% of ATP.
Compact SUVs, which account for 1-in-5 in five new-vehicle sales, remain the most competitive and popular segment in the U.S. market. Its November ATP increased slightly by 0.5% to $36,858, approximately 3% below the industry average. Incentives were 10.2% of ATP, an increase from 9.4% in October.
New electric vehicle (EV) sales were also strong, with November being the second-best month ever for the segment, driven by increasing incentives, making them an incredible deal for consumers. The ATP for a new EV was $55,105, a 1.8% decrease from October. Incentives increased to 14.9%, the highest number since the pandemic and a slight increase from October’s 14.6%.
Despite higher prices, strong incentives, and discounts maintain momentum in the auto market. 2024 is expected to end on a positive note, and strong consumer demands and higher incentives should keep the market active and healthy.
