New Car Prices Have Stabilized: J.D. Power
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.
Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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