Auto manufacturers are raising their prices, and adding expensive features, so it should come as no surprise that Americans are paying more for new vehicles than ever before.
Prices Up By $248 at Year End
According to Kelley Blue Book data, the estimated average transaction price (ATP) for light vehicles in the United States was $34,428 in December 2015.
KBB said that new-car prices are up by $297 since December 2014, and they were up $248 in just the month between November and December 2015.
That’s a big jump.
Consumers’ insatiable demand for luxury vehicles, SUVs and trucks has a lot to do with this. In Central Oregon, SUVs and trucks have been a consistent staple of our vehicle transportation needs, but even here there has been a shift. These changing preferences (away from economy cars in recent years) has resulted in a huge spike in the average prices being paid for new vehicle transactions.
Vehicle Redesigns and Features
But so, too, do increased sticker prices. KBB points out that vehicle platform redesigns and adding new features have allowed auto makers to increase prices.
Prices for Lexus and Lincoln vehicles, for instance, both rose 1% from November to December. These brands now have average prices of around $40,000.
Even more dramatic has been German auto maker Porsche’s 4% jump in price, month-over-month.
But even non-luxury brands have enjoyed price increases. Honda was able to raise its prices on its redesigned Civic and Pilot models – with the Civic up by 2% and the Pilot up by a big 11%, to $37,242.
Notice how the prices on this Honda model are now touching luxury-car territory. This is a theme we’ve seen in recent years, as “ordinary” vehicles have become more substantial, sophisticated and feature-laden.
People are choosing to buy more elaborate vehicles, and they’re paying the price.
How We Can Help
If you are looking for a new vehicle we can help. Our auto and RV financing provide great rates, flexible terms and a “How can we do it” attitude. We can also help you determine the price of your trade-in to ensure you get the value you deserve. Our Auto Smart Web Tool can help you find the right car at the right price.