Feb 2, 2023
Ford Sees US Car Prices Falling 5% This Year as Rebates Rise
(Bloomberg) -- Ford Motor Co. predicted new US car prices will fall about 5% as automakers dial up the discounts, giving consumers a break from last year’s sticker shock.
Parts shortages emptied dealer lots of inventory over the past three years and drove up average sale prices on new cars to a record $49,507 in December, according to Kelley Blue Book. But Ford sees that easing this year, and as the supply of cars grows, carmakers will face pressure to make deals.
“Market forces are going to drive average transaction prices down, we think, probably around 5%,” John Lawler, Ford’s Chief Financial Officer, said Thursday on a call with analysts to discuss the automaker’s disappointing 2022 earnings. “Through the year, particularly in the second half, you’ll start to see prices come down through higher incentives.”
Ford hopes to keep its pricing “flattish” overall, Lawler said, citing, for example, plans to charge more for its newest models, such as a redesigned version of the high-profit Super Duty pickup truck that ranges from $40,000 to more than $100,000.
©2023 Bloomberg L.P.