It’s not just the used car market that’s hopping right now — new cars are selling for the record average price of $30,748. That’s 6.9% higher than a year ago, because consumers are feeling fancier these days and choosing expensive options for their new vehicles.
The Detroit Free Press says this is a sign of the rebounding industry. Cars are going for higher prices because there’s more of a demand for them. In the wake of the recession, many auto dealers are carrying less inventory on the lot, and there are fewer dealers around as well.
Add in the increase in available credit for consumers who want to junk their clunkers and trade in for more fuel-efficient vehicles to combat rising gas prices, and you’ve got a market for new cars.
The increase in prices will keep it up for the next few months before stabilizing and then once again rising next year, say industry experts. And even though there are less deals out there, people are still ready to buy — U.S. auto sales for March were at a 14.4 million annual sales rate, up from 13.1 million in March 2011.
Automakers find sweet spot on prices [Detroit Free Press]