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.