Waiting To Buy a New Car May Not Be the Wrong Decision
According to an analysis by RVI Analytics of Stamford, Conn., new vehicle prices increased for the first time in 8 months, and remain up compared to last year’s prices. New vehicle prices (transaction prices), on a seasonally adjusted basis, are up 0.61% from January to February. New vehicle prices have increased 3.0% since February 2011.
The reason for the jump is fairly simple. Consumers are expressing a pent-up demand and buying new vehicles. Auto manufacturers no longer have to bargain hard to get consumers through the door. Incentives are dropping.
Hyundai has reached some of the lowest incentive levels. As Hyundai Motor America president and CEO John Krafcik rightly bragged at the New York International Auto Show media days, Hyundai's incentives averaged $843 per vehicle, which is one-third the industry average. That number is also dropping.
Industry sales were up in March. According to most figures, the increase was about 13.3 percent. Chrysler all but obliterated that mark, though, with sales up 69.7 percent in March.