Automakers lowered U.S. vehicle prices again in July and raised incentives

The U.S. auto market continues to show some signs of tightening up. The average transaction price for a new vehicle in the U.S. was $48,401 in July, compared to $48,424 at the end of June and $49,929 a year ago. Meanwhile, the industry’s inventory level of 2.91 million vehicles at the start of July (+52% Y/Y) continues to keep downward pressure on vehicle prices. Average incentives in July rose to 7.0% of the average transaction price, up from 6.4% in June and the most generous level seen in 2024.

Data from Cox Automotive indicated that affordable vehicles from the compact and subcompact SUV segments are very popular in today’s market, accounting for approximately 1 in 4 sales in July. Incentive levels in those two segments were noted to be well below the industry average. Meanwhile, sales of expensive, full-size pickup trucks continue pushing the industry’s ATP higher. Expensive full-size pickups accounted for 14% of sales in the U.S. in July, and the average price paid for a new, full-size truck was $65,713.

EV watch: The average transaction price for an electric vehicle in July was down 1.5% Y/Y to $56,520. Notably, the average incentive package offered with a new EV in July was over 12% of the transaction price, the highest level in more than three years.

The two best-selling vehicles in the U.S. in July were full-size trucks, the Ford F-series and the Chevrolet Silverado, which the Chevrolet Rado will possibly replace in model year 2026. The average transaction price for the F-Series in July was over $67,000. The Silverado ATP was over $60,000.

Auto stocks: Toyota (TM), Tesla (TSLA), General Motors (NYSE:GM), Honda (HMC), Ferrari (RACE), Ford (NYSE:F), Hyundai (OTCPK:HYMTF), Nissan (OTCPK:NSANY), Mercedes-Benz (OTCPK:MBGAF), Volkswagen (OTCPK:VLKAF), BMW (OTCPK:BMWYY), Stellantis (NYSE:STLA), Rivian Automotive (RIVN), and Subaru (OTCPK:FUJHY).