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Vehicle purchase prices are on the rise

Posted On Thu, January 5, 2012

Automotive purchase prices increased during the month of December while incentives dropped, according to a report from TrueCar.com.

The average transaction price for vehicles increased $1,682 to $30,686 during the month of December, according to the report. This is an increase of 5.8 percent year-over-year. In addition, when compared with November, it is an average rise of $189, which is 0.6 percent higher. Transaction prices increased for a fourth month in a row.

Incentives, meanwhile, dropped an average of $2,562 during December, a 3 percent and $80 drop year-over-year, the report noted.

"Despite continued economic uncertainty, consumers bought more technology and features-rich vehicles in 2011 helping transaction prices reach record levels and strengthening their balance sheets," said Jesse Toprak, vice president of industry trends and insights for TrueCar.com. "It's an indication that if you build the right product, consumers will purchase it even without manufacturers spending heavily on incentives."

Consumers who are planning on purchasing a new vehicle may want to compare auto insurance rates beforehand, as it could save money lost with increasing prices.

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