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Posts Tagged ‘average transaction prices’

Automakers End 2013 With Best Sales in Six Years

Optimism is the word as 2014 gets underway.

by on Jan.03, 2014

It was another "best-selling" year for the F-150 as it again captured the title of best-selling vehicle in the U.S., helping Ford to a 2% sales increase in December.

With domestic and international brands reporting solid gains in December, new vehicle sales, like the stock market, finished 2013 on an upbeat note, creating optimism about the outlook for the year to come.

While a few manufacturers have yet to report in, the industry was on track to report its best sales numbers in six years, a welcome relief after the worst industry downturn since the Great Depression. A total of about 15.5 million vehicles were purchased by U.S. motorists in 2013, and forecasts for the coming year range from IHS Automotive’s conservative 16.1 million to as much as 16.5 million or more.

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Significantly, an assortment of manufacturers finished last year reporting all-time best numbers, a list that included imports such as Audi, Subaru, Hyundai and Kia. But at least a few automakers ended 2013 on a mixed note – Toyota, for one, reporting a 1.7% drop in December sales, though it was nonetheless up 7.4% for the year as a whole. (more…)

Luxury Cars, Japanese Brands Gain Big During August’s Sales Surge

Transaction prices top all-time record.

by on Sep.04, 2013

The traditionally strong selling season has proved hotter than expected this summer.

Japanese carmakers succeeded in picking up market share during August’s automotive sales boom, while surging demand for luxury cars, trucks and crossovers helped push up the vehicle prices to record levels across the board.

A sharp upturn in recent months has hit consumers squarely in the pocketbook. According to a report by TrueCar.com, the Average Transaction Price – what consumers pay factoring in both incentives and options – surged 3.2% year-over-year to $31,252.

That hasn’t kept buyers out of showrooms, however, with the industry expected to have garnered sales that, on an annualized basis would have come in at or slightly above 16 million, according to industry analysts.  Most have been raising their forecasts sharply in recent months as showroom traffic continues to defy concerns about the unsteady economy.

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“The market is continuing to pick up steam, our sales momentum is on record pace and we have two major new products hitting the market in the next few weeks,” said Steve Cannon, president and CEO of MBUSA, which saw the Mercedes-Benz brand post a 21% increase for August to stay ahead of BMW.

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Car Sales Surge – and May be Bad News for Buyers

Incentives down, prices up.

by on Jan.03, 2013

Toyota's Camry nabs the sales crown for 2012.

Automakers have closed the books on 2012 and appear to be carrying enough momentum to continue their recovery in the year ahead.  That is likely to mean record profits for both Detroit and foreign manufacturers, according to industry experts – but it could mean fewer discounts and notably higher transaction prices for consumers.

While a few makers have yet to report their final numbers, December appears on track to have yielded a low double-digit gain for the U.S. auto industry, perhaps as much as 15% compared to the final month of 2011.  That will likely mean that the past year, as a whole, was the industry’s best since 2006, just before the automotive market – and the economy as a whole – began sliding into recession.

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The annualized rate of sales in December came 15.3 million units basically the same as in November. Nonetheless, the year was a good one for the industry as most carmakers posted solid sales gains – and giving credence to recent forecasts that sales should reach the mid-15 million range for all of 2013.

Meanwhile, average transaction prices soared to an all-time record high last month of $31,228, according to data analyzed by TrueCar.com.

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Sales Up – Incentives Down

Pent-up demand, not givebacks, draw shoppers to showrooms.

by on Sep.04, 2012

Hyundai's updated Genesis coupe helped the maker drop incentives and demand higher prices in August.

While a number of key automakers have yet to report their final numbers for August, there’s little doubt it was a strong month for the industry, likely bringing an overall sales increase of around 16%, year-over-year – a sharp contrast to the stuttering numbers from other sectors of the economy.

The August numbers are all the more impressive when considered in light of the fact that incentive spending continued to drop during the month – while transaction prices were up sharply compared to August 2011.

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“There’s still pent-up demand,” driving buyers back into showrooms, suggested Frank Trivieri, vice president of sales for Volkswagen of America, which reported a striking 62.5% year-over-year sales increase.

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Yes, You’re Likely Paying More for that New Car

Makers curb incentives, raise prices.

by on Aug.01, 2012

Does the price on that Munroney Sticker seem a little higher than you might have expected?

Yes, you probably will pay more for that new car, truck or crossover you’ve been eyeing.  With U.S. sales rising and factories, in many cases, stretched to the limit manufacturers have been curbing incentives and nudging prices higher, according to industry analysts.

The good news is that whatever you buy, your next new vehicle is likely to be significantly better-equipped than the product it replaces, reports J.D. Power and Associates.

Anyone watching the Olympics might get the impression this is a great time to buy, at least if a low price tag is the objective.  Chevrolet, in particular, has been heavily promoting its “Total Confidence Pricing” program, implying that all buyers are getting an especially low-ball number.  Other makers have been pitching low-interest loans and other givebacks to get shoppers into showrooms.

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But the deals aren’t as good as they might first seem, according to Jesse Toprak, chief analyst with TrueCar.com.  “Even though automakers may give the impression that they are ramping up incentives spending….(they) are increasingly moving away from cash incentives and pushing finance and lease programs,” he said.

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