The average price Americans paid for a new vehicle in April remained below the manufacturer's suggested retail price (MSRP) for the second consecutive month, according to data released today by Kelley Blue Book, a Cox Automotive company. The average transaction price (ATP) of a new vehicle in the U.S. remained relatively flat in April 2023 at $48,275, a month-over-month decrease of 0.03% ($14) from an upwardly revised March reading of $48,289.

New-vehicle transaction prices in April were up 3.7% ($1,744) compared to year-ago levels. Meanwhile, auto manufacturers' incentive spend rose to the highest level in the last year at 3.6% of the ATP in April, averaging $1,714.

After 20 months of new-vehicle ATPs holding above average MSRP, or sticker price, transaction prices are now trending downward. In April 2023, the average price consumers paid fell to $378 below sticker price. For comparison, a year ago, the average ATP was $600 above MSRP. Sales volumes were down month over month by 1.5% but up 9.0% year over year in April, higher than most forecasts and fed by higher inventory levels and a healthy dose of fleet deliveries.

"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," said Rebecca Rydzewski, research manager of Economic and Industry Insights for Cox Automotive. "Now that inventory levels are starting to climb and manufacturers are increasing incentives, the market will respond accordingly. High auto loan interest rates are still a major issue for many buyers, but inventory and price trends are a positive in the market right now."