Vehicle Prices Approach Peak Again
December buying spree, especially for luxury models, capped four-month upward ATP streak.

Luxury models sold briskly in December, as is customary for the end of the year. Cadillac was one brand whose ATP rose year-over-year, in its case by 13%.
Cadillac
New-vehicle prices are headed back toward pandemic-era highs, based on the last four months of 2024.
As measured by Cox Automotive’s Kelley Blue Book, the average transaction price in December rose about 2% month-over-month and 1% year-over-year to $49,740.
That came close to the historical peak ATP of $49,958 in December 2022, said Cox, which pointed out that prices tend to spike in December with increased luxury sales.
Still, it marked the fourth straight month of ATP increases, which doesn’t seem to bode well for already cash-crunched consumers.
“It was a December to remember, in terms of both sales volumes and prices,” said Cox Automotive Executive Analyst Erin Keating in a press release on the month’s results. She credited the season and a post-election boost in optimism.
“As we reported just after the election, consumer sentiment and confidence have been on the rise. Vehicles, especially luxury vehicles, are typically an emotional purchase, and when consumers are optimistic, they go shopping. Rates dipped for a short bit late in 2024, discounts were higher, and the glass was half full. No wonder we saw the lift in both prices and volume.”
In fact, models selling for more than $80,000 made up 6% of December sales, the highest volume for that segment on record, Cox said.
Some individual brands’ ATPs rose for the month, Cadillac’s by about 13% year-over-year, Tesla’s by 11% and Infiniti’s by 8%. Others’ ATPs fell at similar rates, Mitsubishi’s by 12%, Buick’s by 7% and Volkswagen’s by 6%.
Part of the overall inflation came from electric vehicle ATPs, which were about 1% above year-earlier levels at $55,544.
Overall incentives were flat from November at 8% of the ATP, but that’s up 44% year-over-year, Cox said. EV incentives followed about the same pattern.
LEARN MORE: New-Vehicle Loans Pinch Hard
Originally posted on Auto Dealer Today
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →