Auto prices, incentives increase in March
Posted on Monday, April 7, 2014 at 9:06:44 AM
Thanks to a strong drive to buy new vehicles, in addition to affordable auto financing, consumers today aren't having much of an issue purchasing the best makes and models available.
According to Kelley Blue Book, the estimated transaction price for light vehicles hit $31,995 in March, up 1.4 percent year-over-year but down 0.6 percent month-over-month.
"We are seeing continued year-over-year gains in average transaction prices," said Karl Brauer, a senior analyst for Kelley Blue Book. "The increase in prices have been enough to offset rising incentive spend and consumers have consistently shown they are willing to spend top dollar for the best models available, so the first focus for manufacturers should remain on building solid products."
The biggest transaction price increases for manufacturers on a yearly basis belonged to Honda, at 4.3 percent, and Chrysler, at 3.1 percent, the news source noted.
In addition, incentive spending - or how much a manufacturer is willing to spend in order to generate sales and create deals - has also been on the rise, according to Cars.com. In March, this metric reached $2,714 for light vehicles, up $118 from February and $204 year-over-year. This is good news for buyers interested in well-equipped models, and this trend is expected to continue into the summer.