For the last four years, new car prices have risen quickly as the U.S. comes out of its recent recession. But a new report shows that new car prices are beginning to level off now that automakers have been disciplined about their discounts and sales incentives.
The study by J.D. Power and Associates shows that the average transaction price of new vehicle sales year-to-date is $28,013 compared to last year’s $28,337. From 2008 to last year however, the average transaction price had risen 11-percent.
Helping boost the transaction prices over the past two years were decreased incentives and increased content. According to the report, the average incentive per car sold in 2008 was $3,010. Last year, that value had dropped to $2,686. The market research firm also noted that automakers were selling cars with more options and more equipment, contributing to the increase in average transaction prices.