New vehicle incentives impact transaction prices
Posted on Thursday, May 1, 2014 at 9:38:56 AM
The first quarter of 2014 has been good for buyers interested in new vehicles and auto financing. Overall, both sales and economic conditions have improved, leading to an atmosphere more conducive to spending.
According to TrueCar, the average transaction price for light vehicles reached $30,868 in April, down only $98 from the same time in 2013. This is most likely due to the rise in incentives being offered by dealerships, providing affordable avenues for buyers to choose their ideal car.
"Average transaction prices declined in April as a result of increased incentives," said Larry Dominique, president of ALG and executive vice president of TrueCar. "The ratio of incentive spend to average transaction price is climbing across the industry, but is especially high for Hyundai and Nissan."
In addition, Kelley Blue Book reported that several manufacturers have experienced significant gains over the past year. For example, Toyota saw its transaction prices increase 4 percent on a yearly basis, thanks in part to the strong sales of the Corolla. Other positive gains were felt by General Motors, Chrysler and Honda, while the overall industry trends remained encouraging.