Posts Tagged ‘auto transaction prices’

February Sales Looking “Positive,” but Buyers Paying More

Transaction prices up $1,000 since last year.

by on Feb.25, 2013

Strong demand is leading makers to ramp up production for vehicles like the Jeep Grand Cherokee.

February vehicle sales are heading for another solid month despite headwinds such as economic turbulence created by gridlock in Washington D.C. and a spike in gasoline prices, according to those who track trends on the showroom floor.

The surge in demand is coming despite an ongoing cutback in incentives by automotive manufacturers. In fact, buyers are spending significantly more to drove off the dealer lot than they did just a year ago, industry watchers report.

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“All signs of the industry’s health are positive right now,” said John Humphrey, senior vice president of the global automotive practice at J.D. Power and Associates, or JDPA. “Average transaction prices are up, incentives are stable, leasing is at a healthy level and newly redesigned models continue to make an impact on the marketplace.”

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Motorists Paying More – But Loans Easier to Get

Incentives also increase.

by on Dec.05, 2012

Hyundai boasted the lowest incentives -- and the lowest transaction prices -- last month.

If you bought a car in November odds are you paid more than you would have at almost any time in the past year.  Transaction prices – what motorists actually spend after working in incentives and factory options – are at or near record levels.

That’s despite the fact that many manufacturers increased givebacks last month, hoping to keep sales momentum going. They’ve also been working with lenders to ensure that credit continues to become more readily available – though motorists have been stretching out loans and are now taking an average of 64 months to pay off a car purchase.

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“Industry average transaction prices climb once again with consumers’ continued appetite for highly contended vehicles,” said Jesse Toprak, Senior Analyst at the data tracking service TrueCar. “Today’s consumers value a nicely equipped vehicle as much as they do a low cost of ownership. Automakers are getting better at providing all the modern conveniences consumers come to expect for more of their models, resulting in higher overall prices hence improved profitability.”

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Preliminary Signs September Car Sales Soared – But So Did Incentives

Givebacks atyear’s highpoint; transaction prices plummet.

by on Oct.03, 2011

With supplies low on models like the Elantra, Hyundai was one maker able to slash incentives last month.

While only a handful of manufacturers have so far released their September sales numbers, the figures could provide some rare good news for an economy teetering towards another recession.  General Motors Co., Chrysler Group and Volkswagen have all reported double-digit sales increases for September despite the uncertain economic climate that has prevailed during the last few months.

VW led the way with a 36% sales increase, while Chrysler reported a 27% increase and GM said its sales increased 20% compared with September 2010.

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But there appears to be a downside: industry analysts are reporting that it appears incentives surged to their highest levels in a year, while transaction prices – what consumers actually pay for a specific vehicle – slumped sharply.

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August Auto Sales Beating Expectations

Buyers kept shopping despite hurricanes, ill economic winds.

by on Sep.01, 2011

The Versa helps Nissan buck the downturn by Japanese makers.

While a number of major carmakers have yet to report in, early indications suggest August auto sales exceeded even the more optimistic forecasts – despite fears of a double-dip recession and a hurricane that shut down much of the East Coast during the final weekend of the month.

Detroit’s automakers reported strong demand, especially for their more fuel-efficient models – as did Japan’s second-largest manufacturer, Nissan.  But sales of pickups and SUVs also fared reasonably well, as Chrysler’s Jeep brand reported.

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“We’re carrying good momentum and we’re cautiously optimistic that we’ll see U.S. economic growth improve in the months ahead,” said Don Johnson, General Motors’ North American sales chief.  During a media background briefing, Johnson suggested that, “Consumer are being cautious, yes, and appropriately so, but they are not retrenching.”

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