Auto Industry on a Roll – With Side Effects

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MSNBC - January 7, 2013

Automakers have closed the books on 2012 and appear to be carrying enough momentum to continue their recovery in the year ahead.

What does that mean for car buyers?

Car buyers could face lower incentives and higher transaction prices in 2013.

Data from TrueCar.com seem to support that. The auto tracking service found the average transaction price for a new vehicle purchased in December surged to $31,228, a $542, or 1.8%, increase year-over-year and a $396, or 1.3%, jump from November 2012.  Incentives for the month, meanwhile, dropped 9.0% industry-wide, to an average $2,409 compared to December 2011.

Chrysler said its sales rose 21 percent last year, making for its best sales year since 2007.

General Motors Co.’s dealers delivered the company’s highest December sales in five years, with deliveries up 5% year-over-year to 245,733 vehicles. December was also GM’s best retail sales month of 2012. Incentive spending was “competitive” with industry-wide levels, the maker contended.

 

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