New-vehicle prices kept ticking down in August from the highs seen during the pandemic as inventories head in the other direction and dealers pump up incentives to juice sales.

The average transaction price for the month totaled $47,870, down about 2% year-over-year in its biggest decline this year, though essentially flat month-over-month, according to Cox Automotive, which said it was the 11^th consecutive month of price declines.

Meanwhile, the average incentive package was 7% of the ATP, up 49% year-over-year, the highest since May 2021 and getting closer to the peak of about 11% in December 2019, just a few months before the Covid pandemic hit the West.

Inventory, recovering from the crisis, was up 40% over a year earlier, Cox said.

“Automakers are coming to the table with more incentives, but credit remains tight, putting more pressure on dealers to get creative with additional discounts and financing, affecting the bottom line,” said Cox Executive Analyst Erin Keating in a press release on the August results.

Incentives for pickups, SUVs and electric vehicles led the market on average, though luxury car incentives were highest at 10% of ATP, Cox said.

DIG DEEPER: Buy-Sell Market Still Hot: Dealership Sales Hit Record