New Car Prices Take a Breather in January, But EVs Hold Their Ground

After a wild December, new car prices dipped slightly in January, but EV prices are surprisingly steady. Is this a sign of things to come, or just a seasonal blip? And why is Jeep trying to be "affordable?"

January's Auto Market: A Mixed Bag

Kelley Blue Book (KBB) just dropped its latest report on new-vehicle prices, and it paints an interesting picture. Overall, the average transaction price (ATP) for a new car in January fell 2.2% to $48,641. That's still up 1.3% from last year, but the real story lies beneath the surface.

Luxury Cool-Down

One of the biggest factors in the price drop is the typical January slump in luxury car sales. Brands like Audi, BMW, and Lexus saw sales plummet after the December rush. Fewer high-end cars in the mix naturally brings the average price down. Makes sense, right?

Jeep's Price Play

Erin Keating from Cox Automotive points out that Jeep prices are down almost 9% year-over-year. Jeep seems to be intentionally trying to be more competitive on price, with ATPs close to the industry average. Is this a smart move to attract more buyers, or is it a sign that even iconic brands are feeling the pressure to offer better value? It's definitely something to watch.

Electric Vehicle Prices: Holding Steady

Here's where things get interesting. While overall car prices dipped, EV prices remained relatively stable at $55,614, down only 1.4% year-over-year. Tesla's Model Y and Model 3 even saw price increases. What's driving this resilience? Are EVs becoming less sensitive to the usual market fluctuations? And is Tesla immune to the price wars everyone keeps talking about?

Incentives and the Future

Incentive spending is up across the board, but down month-over-month for EVs. This suggests manufacturers are still trying to lure buyers, but perhaps EV demand is strong enough that they don't need to discount as heavily. The big question is, will these trends continue throughout the year? Are we heading towards a more stable market, or is this just the calm before another storm?