The average transaction price for new automobiles in the U.S. dipped 0.3% in April, industry research firm Kelley Blue Book said on Tuesday, after some two years of higher prices due to shortages of chips and other parts and markups from dealers. April was the second straight month that the price customers paid for a new vehicle was below the manufacturer’s suggested retail price, the firm said, although transaction prices in April were still up 3.7% year-over-year. But Kelley said automakers’ spending on incentives intended to attract buyers rose to the highest level in the past year, at 3.6% of the average transaction price last month. “New-vehicle transaction prices are trending downward in 2023, which should feel like a breath of fresh air to buyers following the last few years of low supply and rapidly rising prices,” Rebecca Rydzewski, a research manager at Cox Automotive, Kelley Blue Book’s owner, said in a statement. “Now that inventory levels are starting to climb and manufacturers are increasing incentives, the market will respond accordingly.” She added that higher auto-loan interest rates were still a hurdle for car buyers.
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