Auto Prices Going Up – Why?

auto_prices_rising2a - 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.