Car Prices
New Car Prices now average over $35,000 according to price tracker Edmunds.com. New car prices (MSRP) in December averaged $36,481, up 2 percent from the average sticker price in November and 4.6 percent higher than a year earlier. Normal negotiation and strong incentives kept the actual, average selling price well below that. In December it was $31,077, about 5 percent above the year-ago transaction price. Both average negotiated prices were about 14 percent below the MSRP (manufacturers’ suggested retail price). According to Consumer Reports, 80% of car buyers now go online to gather information before they make a car purchase. Online shoppers for new cars can compare different makes and models, find pricing, build a virtual car, apply for financing and even check for trade-in values for their used car – all without having to step into a physical dealership.
New car prices, rising interest rates, and a drop in the numbers of low-mileage used cars have induced more customers to lease. Leasing takes away the worries associated selling a car, and a good lease deal requires almost no down payment. Lease payments typically are lower than purchase payments because they’re based not on new car prices, but on the purchase price minus the vehicle’s residual value — that is, its expected resale value at the end of the lease term. In theory, customers pay only for the portion of the vehicle’s value they use. The key to making money on leasing is estimating that residual value.
Back to the top of Car Prices.