Car Prices | TheDetroitBureau.com
Detroit Bureau on Twitter

Posts Tagged ‘car prices’

Auto Sales Slip a Bit, but Beat Expectations

Prices continue to push upwards.

by on Sep.01, 2015

Keep on trucking. Vehicles like the new Renegade helped Jeep score some of the industry's biggest gains in August.

Despite Wall Street’s shake-up, China’s sliding economy – and a fluke of the calendar – the U.S. auto industry did a bit better than anticipated in August, with far less of a downturn than some had predicted and a number of manufacturers managing to eke out strong gains.

While some brands, such as Toyota, saw sharp declines, others pushed into record sales numbers. And carnakers continued to see average transaction prices rise again last month, prices running at or near record levels for most of them, according to industry analysts.

Industry News!

“In spite of a tough 2014 comparison and extreme stock market volatility, our dealer’s competitive spirit kicked in and propelled us to our 65th-consecutive month of year-over-year sales increases,” said Reid Bigland, Head of U.S. Sales. “Our Jeep brand turned in a double-digit increase while eight individual models, including four Jeep brand vehicles, set sales records.”

(more…)

Spending on New Cars Hits All-Time High, Even as Loans Stretch to Record Lengths

Average transaction prices up 4% in May.

by on Jun.02, 2015

Buyers filled the showrooms of car dealers and added to the bottom lines of automakers in May.

While May might not have brought the big uptick in sales we’ve seen in recent months, preliminary data suggest that automakers took in record revenues, with the average transaction price of new cars, trucks and crossovers sold last month climbing by at least 4%.

All told, U.S. buyers spent a record $52 billion for their new vehicles in May, in part, due to a sharp, year-over-year decline in incentives, according to several firms that track monthly sales data. A separate study suggested that motorists are covering those higher costs by stretching their loans out longer than the industry has ever seen, an average 67 months.

Subscribe for Free!

“New vehicle sector and segment preference indicates consumers are confident about the economy and their finances,” said TrueCar President John Krafcik. “Not only are these shifts to premium brands and utilities telling from an economic indicator standpoint, they signal sizable revenue gains automakers should reap this year.” (more…)

Average American Can No Longer Afford “Average-Priced” New Car or Truck

But upward trend is likely to continue.

by on Mar.12, 2014

The price of the average Chrysler product rose 6.1% year-over-year in February, according to TrueCar.

New car prices have been rising rapidly in recent years, various studies showing that Average Transaction  Prices – what buyers actually pay after factoring in incentives and options – have hit record levels.  And that means that more and more American motorists are being priced out of the market.

The average median-income household can no longer afford to purchase the “average-priced” new car or truck in 24 of the country’s 25 largest metro areas, according to a new study by the financial website Interest.com.  The exception is Washington, D.C., according to the study, which also found that in 16 cities, median family incomes fell at least $10,000 short of what it would take to buy the typical new vehicle.

Our Price is Right!

“Too many families are spending way too much on new cars and trucks,” said Mike Sante, managing editor of Interest.com. “Just because you can manage the monthly payment doesn’t mean you should let a $30,000 or $40,000 ride gobble up such a huge share of your paycheck.”

(more…)

Average American Can No Longer Afford the Typical New Car

Washington, D.C. the only city with high enough household income.

by on Feb.27, 2013

Can you afford this 2013 Ford Fusion -- or any other typical 2013 model? Maybe not, finds a new study.

Looking to buy a new car, truck or crossover? You may find it more difficult to stretch the household budget than you expected, according to a new study that finds median-income families in only one major U.S. city actually can afford the typical new vehicle.

The typical new vehicle is now more expensive than ever, averaging $30,500 in 2012, according to TrueCar.com data, and heading up again as makers curb the incentives that helped make their products more affordable during the recession when they were desperate for sales.

Feed Your Need for News!

According to the 2013 Car Affordability Study by Interest.com, only in Washington, D.C. could the typical household swing the payments, the median income there running $86,680 a year. At the other extreme, Tampa was at the bottom of the 25 large cities included in the study, with a median household income of $43,832.

(more…)

Superstorm Likely to Hit New, Used Car Buyers in the Wallet

But you could get more for your trade-in over the coming months.

by on Oct.31, 2012

Cars float out of a flooded garage in Manhattan after Superstorm Sandy drove record floodwaters into the city. Photo courtesy Ray Wert, Jalopnik.

With much of the Eastern Seaboard still digging out and drying out from Superstorm Sandy estimates now put the damage at anywhere up to $50 billion, perhaps more.  But in the weeks to come, even consumers as far away as the West Coast could feel the pinch.

That is likely to be especially true for car buyers.  Early estimates suggest that tens, perhaps hundreds of thousands of vehicles were damaged to the point they will need to be replaced.  And that is likely to drive up prices for both new and used vehicles in the weeks and months ahead, experts warn.

Your Auto News Center!

If there’s a positive side for consumers it could mean better prices for those looking to trade in a car. For the industry, it’s likely to add even more momentum to the U.S. automotive market’s ongoing recovery.

(more…)

Behind July’s Confusing Sales Figures

Mixed numbers raise both hopes and concerns.

by on Aug.02, 2012

GM is hoping the new Cadillac ATS can help it rebuild some momentum.

Sales of new cars jumped 18% in July despite growing economic certainty. But the numbers also reflected shifts in the market dynamics that had prevailed over the past 12 months as Honda and Toyota reported big sales increases, while General Motors and Ford Motor reported their sales dropped last month and other carmakers began to show signs of distress.

It was a month of conflicting trends, some reports suggesting makers were, on the whole, able to command their highest transaction prices while continuing a year-long cutback in incentives. But there are indications that pattern may not be able to continue much longer.

Your Trusted Source!

Fast-growing South Korean carmakers also saw their sales pace slow as both Hyundai and Kia reported only modest increases for July and the boom in luxury car sales seems to be winding down as BMW, Mercedes-Benz chalked up on modest gains, while Porsche sales slipped 1%.

Industry analysts will be watching closely, in the weeks to come, to see if the market can maintain the momentum it had shown during the first half of the year as sales were unchanged from June with a seasonally adjusted annual sales rate, or SAAR, topping out at 14 million units

(more…)

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.

Subscribe for Free!

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.

(more…)

Car Prices Tumble – Especially Japanese Products

Used vehicle prices also on the decline.

by on Jun.28, 2012

As the holiday approaches, motorists will be able to celebrate the decline in both new and used car prices.

The start of the typically strong summer buying season has brought with it some great news for U.S. car buyers.  According to a variety of sources, prices are tumbling on both new and used vehicles – especially those Japanese offerings that were in short supply last year in the week of that country’s devastating earthquake and tsunami.

While prices vary by model and manufacturer, you can expect to pay about $500 less for the typical new car, truck or crossover than you would have for the same product a year ago, according to research by Kelly Blue Book.

Meanwhile, after a record run-up in pricing during the winter and spring, used car prices also appear to be on the decline.

Pricing News!

Some of the biggest discounts, the tracking firm reports, come on Japanese models like the Honda Civic and even the Toyota Prius.  But that may be a bit misleading.  Following the March 2012 natural disaster, most Japanese products were in short supply, leading makers to trim back rebates and other discounts – effectively raising prices.  Those givebacks are now getting back to more normal levels, Bob Carter, head of the Toyota division, tells TheDetroitBureau.com.

(more…)

Sales Up but Transaction Prices Slip

But customers continue moving up-market.

by on Feb.03, 2012

With products like the Elantra flying out the door, Hyundai (and sibling Kia) had the lowest industry incentives last month - but also the lowest average transaction prices.

Trend or just a temporary setback?  In recent months, buyers have been steadily moving up-market while also adding significantly more content to the vehicles they buy.  Along with cutbacks in the typical industry incentive package that has rapidly driven up the price motorists pay – the average transaction price, or ATP, in industry lingo.

But while January saw a surge in sales, preliminary data suggest they may also be reining in their spending by focusing on lower-priced, less lavishly-equipped models.

The Final Word!

Including cars, light trucks and crossovers, the typical motorist spent $30,512 in January, according to car pricing information tracked by TrueCar.com, a 0.6% decline from December.  But while that’s a notably reversal of recent trends, it doesn’t appear to signal an end to the industry’s current upward momentum, analysts stress.

(more…)

TrueCar Yields to Critics and Regulators

Facing mounting legal hurdles, pricing service plans “sweeping changes.”

by on Jan.17, 2012

TrueCar founder Scott Painter is promising "sweeping changes" to the site's business model.

Scott Painter has never been one to readily yield to his critics, but with state regulators taking aim and a series of huge legal battles looming across the country, the Internet car sales pioneer has backed down, announcing “sweeping changes” to the way his latest venture, TrueCar.com, operates.

The service has generated significant buzz – and plenty of traffic – since its launch, promising to provide consumers with what it has claimed to be the most accurate pricing data online.  Dealers, in turn, were provided an alternative model to attract customers.  Instead of paying for leads, as is the case with most online auto sites, they only paid a $300 fee whenever a car was actually sold.

News Now!

TrueCar’s approach has generated strong support in some quarters – but plenty of criticism elsewhere.  And angry dealers, always a force to be reckoned with, were able to rally support in a number of states where TrueCar appeared to be running afoul of strict franchising laws.  Notably, states like Texas and Virginia bar so-called “bird-dogging,” or auto brokering, where a third party steps in to help a customer get a better price.

(more…)