The U.S. auto market is gaining momentum after the recession which led to the bankruptcy of the General Motors and Chrysler groups, but so are median car prices.
According to TrueCar.com, the average transaction price for new light vehicles in the States reached $30,748 in March 2012, an increase of $1,977 or 6.9 percent from March 2011 and $143 or 0.5 percent from February 2012.
Most analysts seem to agree that one of the reasons why average prices are on a rise is that automakers are constantly reducing big cash-back offers and other incentives.
“The auto manufacturers have finally found their sweet spot, with the production of vehicles meeting the demand of consumers, keeping incentives to a minimum,” said Jesse Toprak, VP of Industry Trends and Insights for TrueCar.com. “This led to the highest transaction prices in the industry in March, along with record highs for Chrysler, GM, Hyundai/Kia, and Nissan.”
In its latest study, Truecar estimated that the average incentive for light-vehicles was $2,440 in March 2012, down $43 or 1.8 percent from March 2011 and down $36 or 1.5 percent from February 2012.
CNN reports that another reason for the increase in prices are the higher gas prices and new federal mileage regulations that force automakers to add costly features to improve mileage, while consumers also want more luxury amenities on any type of car, which also increases costs.
“You’ll still see some summer sales, but we’ve been adding about $1,000 a year to prices over the last several years,” said Toprak. “There’s no reason to think that trend line is going to turn around, even if it slows down a little bit.”
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