Editor/Reporter - CheersandGears.com
April 18, 2012
New analysis from TrueCar, an online research firm, shows the average transaction price of new cars are on the rise.
TrueCar looked at sales data from last month and found that the average price was 30,748, a rise 6.9% over the previous year.
So why the increase in average price? The answer lies in the options list. Consumers are ticking more boxes on the list like never before, with the average new car being very close to “fully loaded.”
For example, Ford’s president of the Americas, Mark Fields recently told investors that the Focus is selling for an average of $3,100 more per car than the previous model year.
Aside from the option list, the other factor is automakers cutting back on the incentives. This is due to automakers, especially the big three changing their business model to focus more on forecasting and producing vehicles at a proper volume than flooding dealers with too many vehicles.
TrueCar predicts that the average price will begin to level out, sometime when the average price hits $31,000.
Source: USA Today