Auto Prices Going Up – Why? - August 3, 2012

As con­sumers head back to deal­er­ship show­rooms, they can expect to pay more for the vehi­cles they opt to buy. The good news: What­ev­er they pur­chase will like­ly be sig­nif­i­cant­ly bet­ter-equipped than the prod­uct it replaces, reports J.D. Pow­er and Asso­ciates.

What’s the rea­son behind high­er prices for new cars?

The deals aren’t as good as they might first seem, accord­ing to Jesse Toprak, chief ana­lyst with Only a hand­ful of man­u­fac­tur­ers — notably includ­ing Hon­da, Nis­san and Volk­swa­gen — are offer­ing big­ger incen­tives than were avail­able a year ago.

The major­i­ty of automak­ers sharply cur­tailed give­backs — Toy­ota by a whop­ping 22.5 per­cent year-over-year. The indus­try, on the whole, decreased incen­tive spend­ing by 3.7 per­cent.



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