Mercedes-Benz and Land Rover showed the most price strength in the luxury market, transacting between 2.6% to 6.5% over sticker price last month. Luxury brands Audi, BMW, Infiniti, Lexus, Lincoln and Volvo showed the least price strength, selling 1% or more below MSRP in December.
Electric Vehicle Prices, Led by Tesla, Decreased Notably in December, Were Down from Year Ago
The average price paid for a new EV decreased in December by $3,594, down 5.5% compared to November, and ended the year lower by 0.6%. The average new EV sold for $61,448, according to Kelley Blue Book estimates, still well above the industry average.
The drop in pricing was driven by significant price cuts at Tesla, which commands more than 65% of the electric vehicle segment. Earlier in the year, Tesla was increasing prices, citing supply issues. In December, the company reversed course.
Auto Incentives Offered by Manufacturers Remain at Historically Low Level but Are Increasing
Incentives increased in December 2022 to 2.7% of the average transaction price, compared to 2.2% in November. In December 2021, incentives averaged 3.8% of ATP. In December 2019, before the pandemic and when inventory was plentiful, the average incentive package was 10.9% of ATP, according to Kelley Blue Book estimates.
Electric vehicles had the highest incentives in December, again influenced by changes at Tesla, at 6.2% of ATP, followed closely by luxury cars at 5.8% of ATP. Meanwhile, vans, minivans and full-size SUVs had the lowest incentives, all less than 1% of ATP.
Source: Kelley Blue Book
Abby Andrews