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Posts Tagged ‘new vehicle prices’

Used Vehicle Prices Rising, Pushing Buyers to Look at Leasing

Rising interest rates hastening trend.

by Michael Strong on Nov.09, 2018

Used car shoppers are finding higher prices than ever for vehicles.

New vehicle prices have reached all-time highs this year and now used vehicles, the haven for car buyers looking for a deal, have now joined new cars, setting a new pricing benchmark.

The average price of a used vehicle is now $20,084, the highest since 2005 and a 3.5% increase year over year, Edmunds notes, adding that increase is rising as it jumped to 5% in Q3. American preferences for expensive new trucks and utility vehicles pushed new vehicle prices over the $36,000 mark, according to Cox Automotive.

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In short, buyers are paying more for a vehicle and with interest rates rising, the options for cutting down that monthly payment are getting tougher. (more…)

Strong Demand, Interest Rates Causing Jump in Used Car Prices

Compact, midsize sedans driving the shift.

by Michael Strong on Oct.08, 2018

Used vehicle prices are on the rise and that's unlikely to change in the near term, especially for compact and midsize sedans.

Car buyers looking for a deal by getting a used car are going to be sorely disappointed — used vehicle prices are on the rise.

According to the latest data from Manheim, used vehicle values set a new record for the third month in a row, which is unusual. The abnormal summer bounce began in mid-June and drove prices higher for 11 straight weeks.

Insight!

That changed some with the arrival of September, which saw several weeks of normalizing depreciation. However, it wasn’t enough to offset the overall jump in prices as 3-year-old vehicles are now worth 4.5% more than they would normally be worth had typical depreciation occurred through July and August, according to Manheim. (more…)

Gap Between What Buyers Want and Can Afford Widens

New affordability measure suggests most buyers in over their heads.

by Michael Strong on Dec.15, 2016

New crossovers and trucks are flying off dealer lots. While most people are springing for vehicles like the one above ...

The good news for automakers is that the average transaction price, i.e. what folks pay for a new vehicle accounting for rebates and other incentives, continues to rise. However, car buyers are seeing that they can afford less and less when it comes to a new vehicle.

A median-income household can afford 58.9% of the light-vehicle average transaction price, according to the November 2016 Auto Buyer’s Affordability Index, which translates to less than $20,000, and this is leaving some consumers less than optimistic.

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In a recent survey, Requisite Press found that three out of four U.S. consumers – 74.6% – believe that new vehicles are unaffordable. (more…)