The average transaction price (ATP) paid for a new vehicle in the U.S. in October was $48,623, according to new data from Kelley Blue Book. Transaction prices last month were higher than the revised September price ($48,423) and higher by 1.7% from year-earlier levels ($47,826). For more than a year now, new-vehicle prices in the U.S. have remained mostly unchanged and near $48,500, as higher inventory levels continue to hold downward pressure on the market.

New-vehicle sales incentives climbed higher in October, jumping from a revised 7.2% of the ATP in September to 7.7% in October, an increase of more than 6% month over month. Compared to one year ago, new-vehicle incentives have increased more than 60% as automakers compete for sales.

“‘Tis the season for automakers to make their final push for 2024 sales,” said Cox Automotive Executive Analyst Erin Keating. “While some automakers focus on managing production, many will likely maintain or even increase their seasonal incentives to attract buyers. With competition intensifying, these strategies will be crucial in maintaining market share and driving end-of-year sales. Our team is generally optimistic for new-vehicle sales to close out the year – extra incentives will certainly help.”

New-vehicle incentives have been climbing for more than two years after hitting a floor in the Fall of 2022. In October, eight mainstream automakers had average incentive packages above 10% of average transaction price, and all four of the Stellantis “domestic brands” – Chrysler, Dodge, Jeep and Ram – had incentive packages above the industry average, as the company works to clear inventory.