New cars more expensive, too.

We’ve already seen that prices of used cars are rising rapidly (see here, here, and here). Now, according to Bloomberg, new cars are getting pricier too:

Buyers who have been waiting for better deals on new cars may be disappointed.  General Motors Co. and Ford Motor Co., bucking decades of tradition, are weaning themselves from dependence on profit- sapping discounts after factory shutdowns curbed dealers’ supply of cars and trucks.

Incentives on GM, Ford and Chrysler Group LLC autos plunged 26 percent to $3,278 in August from a March peak, while discounts industrywide fell 22 percent to $2,474, according to researcher The U.S. automakers’ vehicles sold for an average of $2,000 more in the second quarter than a year earlier, said researcher J.D. Power and Associates….

Ford buyers paid an average of $2,000 more for each vehicle in the second quarter, according to the automaker. That translated into a $900 million increase in net pricing in North America during the period, Ford Chief Financial Officer Lewis Booth said July 23. Researcher Autodata Corp. estimated that Ford pared spending on discounts 27 percent this year.

The average price per vehicle commanded by GM, Ford and Chrysler in the U.S. rose 7.8 percent to $27,571 in the second quarter, from $25,567 a year earlier, according to J.D. Power. Industrywide, average vehicle prices rose to $26,921 in the second quarter from $25,954 a year earlier, Westlake Village, California-based J.D. Power said….


2 Comments on “New cars more expensive, too.”

  1. […] New cars and used cars are getting more expensive. […]

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