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Author	Topic: The surprising reason for record new car prices	Post a Reply Back to Topics

BurntOrange Champion Author Austin Posts:8,722 Points:1,582,040 Joined:Nov 2007	Message Posted: Apr 10, 2012 4:51:29 AM Ignore BurntOrange Report Abuse Buyers are paying record average prices for new cars. But it's not gouging by automakers. Rather, more customers are ordering all the frills. The average price of a new car is running at $30,748, up 6.9% from a year ago. Consumers are choosing more expensive trim levels and makers are being smarter about producing the right combinations of options and trim levels that minimize the chance that cars will be spurned on sales lots. Average prices will increase in the next few months, level off, and then see small increases again next year, said Jesse Toprak, vice president of industry trends at online research firm TrueCar.com. Alan Helfman, whose family owns River Oaks Chrysler and Ford dealerships in Houston, said "interest rates are low, used car prices are high and people are willing .. Visit USA Today for full article

BurntOrange

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Austin

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Message Posted: Apr 10, 2012 4:51:29 AM

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Buyers are paying record average prices for new cars. But it's not gouging by automakers. Rather, more customers are ordering all the frills.

The average price of a new car is running at $30,748, up 6.9% from a year ago. Consumers are choosing more expensive trim levels and makers are being smarter about producing the right combinations of options and trim levels that minimize the chance that cars will be spurned on sales lots.

Average prices will increase in the next few months, level off, and then see small increases again next year, said Jesse Toprak, vice president of industry trends at online research firm TrueCar.com.

Alan Helfman, whose family owns River Oaks Chrysler and Ford dealerships in Houston, said "interest rates are low, used car prices are high and people are willing ..
Visit USA Today for full article

REPLIES (newest first)Ignore Short Messages

ExplorerWA Champion Author Washington Posts:4,073 Points:795,300 Joined:Feb 2011	Message Posted: Apr 10, 2012 8:18:52 PM Ignore ExplorerWA Report Abuse Yeah, right.
dasAuto All-Star Author Regina Posts:708 Points:504,370 Joined:Jan 2009	Message Posted: Apr 10, 2012 3:33:53 PM Ignore dasAuto Report Abuse I'll be damned if I buy off the lot. Special order and get it fresh off the assembly line is the way it's done. Plus, I get what I want in the combination that I want it in. The dealer can keep his lot-vehicles...
md11capt Champion Author Denver Posts:3,558 Points:709,380 Joined:Mar 2011	Message Posted: Apr 10, 2012 10:15:42 AM Ignore md11capt Report Abuse Up only 6.9% huh?
Eugene_C Champion Author Columbus Posts:2,299 Points:155,995 Joined:Mar 2004	Message Posted: Apr 10, 2012 8:41:57 AM Ignore Eugene_C Report Abuse It's not like you can get just some of the options because the dealers don't stock them that way. Usually to get the specific options you want you either have to take the loaded car or special order.
doctorindyj Champion Author Santa Fe Posts:3,443 Points:838,610 Joined:Nov 2009	Message Posted: Apr 10, 2012 8:13:11 AM Ignore doctorindyj Report Abuse The average is what? What planet are these people living on? I guess if they include Bugatti, Lamborghini, and Ferrari in the mix that would bring the 'average' up. This smells like a snow job. Look everyone else is buying a $30000 car you should too!
dsaine Champion Author North Carolina Posts:2,992 Points:631,520 Joined:May 2011	Message Posted: Apr 10, 2012 7:40:54 AM Ignore dsaine Report Abuse New car prices are ridiculous.
Tucker16 Champion Author Ottawa Posts:1,154 Points:542,505 Joined:Jul 2006	Message Posted: Apr 10, 2012 7:40:14 AM Ignore Tucker16 Report Abuse If you're not going to get all the options you want then you might as well buy a used car.
JamesCalvin Champion Author Lancaster Posts:3,181 Points:517,730 Joined:Nov 2011	Message Posted: Apr 10, 2012 7:15:54 AM Ignore JamesCalvin Report Abuse Customers deserve all the frills! Not?
Norm10 Champion Author British Columbia Posts:3,337 Points:162,700 Joined:Dec 2010	Message Posted: Apr 10, 2012 7:06:12 AM Ignore Norm10 Report Abuse It never fails - as soon as cars start to sell the manufacturers try to jack up their prices and gouge the consumers - then wonder why their sales drop significantly - the smart ones will keep their prices low and sales volumes up.
fuel2use Champion Author Seattle Posts:3,483 Points:732,350 Joined:Dec 2010	Message Posted: Apr 10, 2012 7:00:25 AM Ignore fuel2use Report Abuse For years it was gouging by Dealers.
fowlcan Champion Author Oklahoma City Posts:2,105 Points:683,090 Joined:Feb 2011	Message Posted: Apr 10, 2012 6:52:33 AM Ignore fowlcan Report Abuse New = Danger
GetMaxCashBack Veteran Author Trenton Posts:386 Points:162,675 Joined:Mar 2012	Message Posted: Apr 10, 2012 6:51:43 AM Ignore GetMaxCashBack Report Abuse @Bicycle1966: I would think more people want the base models considering the economy. I'd opt for the no AC no radio option if I didn't have to share it with my family.
humblepie Champion Author Toledo Posts:34,154 Points:2,370,395 Joined:Mar 2006	Message Posted: Apr 10, 2012 6:50:58 AM Ignore humblepie Report Abuse i cant even afford to DREAM about a new car
PimpinFoDaGaz Sophomore Author Massachusetts Posts:235 Points:40,725 Joined:Feb 2012	Message Posted: Apr 10, 2012 6:14:48 AM Ignore PimpinFoDaGaz Report Abuse Never buy new. Never. A few years back, I bought a fully loaded Dealer CPO, BMW X3, 22k miles for $26k. Looking at the numbers below make me giddy. Big winners include Chrysler (average selling price up 6.4% in March to $29,842), GM (up 3.4% to $33,289), Hyundai and Kia (up a whopping 9.4% to $21,717), and Nissan (up 7.4% to $28,322). [Edited by: PimpinFoDaGaz at 4/10/2012 9:15:59 AM EST]
TripleHs Champion Author Austin Posts:3,355 Points:915,740 Joined:Oct 2009	Message Posted: Apr 10, 2012 6:08:19 AM Ignore TripleHs Report Abuse it doesn't seem to tell a complete story
TruthMatters Champion Author New Jersey Posts:2,520 Points:533,235 Joined:Oct 2011	Message Posted: Apr 10, 2012 5:34:04 AM Ignore TruthMatters Report Abuse Well, you won't see me at the dealerships any time soon, unless they agree to incentives. I ain't that desperate to have them separate my hard earned cash away from me!
REBELFAN39 Veteran Author Jackson Posts:354 Points:447,955 Joined:Nov 2011	Message Posted: Apr 10, 2012 5:30:58 AM Ignore REBELFAN39 Report Abuse Go to your local car lot and find a cheap new car! Good luck!
blupupher Champion Author Houston Posts:3,545 Points:747,070 Joined:Feb 2011	Message Posted: Apr 10, 2012 5:28:59 AM Ignore blupupher Report Abuse Wish I could afford a cheap new car.
bluestang96 Veteran Author Ohio Posts:268 Points:107,865 Joined:Mar 2012	Message Posted: Apr 10, 2012 5:27:25 AM Ignore bluestang96 Report Abuse ok
REBELFAN39 Veteran Author Jackson Posts:354 Points:447,955 Joined:Nov 2011	Message Posted: Apr 10, 2012 5:26:25 AM Ignore REBELFAN39 Report Abuse I'm not buying a new one either, I have a 99 and it would be cheaper to put in a new motor or trans, than pay 5,6, or 7 years worth of notes. [Edited by: REBELFAN39 at 4/10/2012 8:29:27 AM EST]
bicycle1966 All-Star Author Akron Posts:605 Points:401,840 Joined:Jul 2011	Message Posted: Apr 10, 2012 5:23:58 AM Ignore bicycle1966 Report Abuse nobody wants a "no-frills" base model anymore. The days of the optional AM radio are long over.
GingoutMD Champion Author Maryland Posts:3,495 Points:713,305 Joined:Jan 2010	Message Posted: Apr 10, 2012 5:14:15 AM Ignore GingoutMD Report Abuse This will only increase the price of used cars in two or so years as these more expensive vehicles hit the used car lots and the original owner wants to maximize his income on the sale.
dorisntx Champion Author Fort Worth Posts:2,079 Points:644,355 Joined:Apr 2011	Message Posted: Apr 10, 2012 5:14:08 AM Ignore dorisntx Report Abuse ok
dgerst Champion Author South Carolina Posts:2,702 Points:555,050 Joined:Aug 2008	Message Posted: Apr 10, 2012 5:13:04 AM Ignore dgerst Report Abuse Auto makers are getting smarter about tracking the trim items that are selling fastest. Business Intelligence software helps.
drpepperTX Champion Author Texas Posts:8,934 Points:751,010 Joined:Apr 2011	Message Posted: Apr 10, 2012 5:12:25 AM Ignore drpepperTX Report Abuse Record prices for cars, but it's not gouging? Record prices for gas, but it is gouging? Hmmmmm.
Evilmaddog Champion Author British Columbia Posts:3,317 Points:956,575 Joined:Aug 2010	Message Posted: Apr 10, 2012 5:08:20 AM Ignore Evilmaddog Report Abuse speculators spending their bonuses
Joeski1 Champion Author New Jersey Posts:9,992 Points:1,740,860 Joined:Dec 2004	Message Posted: Apr 10, 2012 5:03:28 AM Ignore Joeski1 Report Abuse Hmmmmmmm, houses are losing value everyday...... But a vehicle that consumes costly fuel is getting more expensive everyday.......... Did someone figure out one can live in a car but not drive a house?
jrschl Champion Author Louisville Posts:2,957 Points:679,115 Joined:Jun 2011	Message Posted: Apr 10, 2012 5:02:07 AM Ignore jrschl Report Abuse Sweet. It just means there will be nicer cars on the used lot in a year or so.
jwalkerh Champion Author Louisiana Posts:6,127 Points:1,368,720 Joined:Oct 2008	Message Posted: Apr 10, 2012 4:58:06 AM Ignore jwalkerh Report Abuse A new vehicle is not in my budget plans...
northeast2 Champion Author New York Posts:3,849 Points:1,007,200 Joined:Mar 2008	Message Posted: Apr 10, 2012 4:56:53 AM Ignore northeast2 Report Abuse We now have a new-car bubble.
coughlin Champion Author San Jose Posts:5,175 Points:1,116,665 Joined:Sep 2009	Message Posted: Apr 10, 2012 4:55:48 AM Ignore coughlin Report Abuse It must be those 1% ers