Are Rising Car Prices a Good Thing for the Economy? - General ...

Are Rising Car Prices a Good Thing for the Economy? - General ...
Volkswagen Prices 2015 Golf GTI - Car and Driver Blog
2015 Toyota Camry Review, Ratings, Specs, Prices, and Photos ...
VW Prices 2015 Golf GTI from $24,395 - The Car Connection

Posted: 15 Apr 2014 12:58 PM PDT

Despite the highly promotional theme that seems to always be present in the car sales market, it turns out that new vehicle prices have been rising steadily over the past five years. This is after a period of consistent declines from 1998 to 2008. Sterne Agee's Michael Ward has a report out on Tuesday showing the trends that both new and used vehicle prices were up again in March. The question we would ask is if your paying more for a new car (or used car) is actually better for the economy as a whole.

The most recent data from the Bureau of Labor Statistics also accounts for the notion that retail incentives have been in a tight range over the past four years, averaging about 8% of the gross transaction price. His report considers that positive pricing and declining costs have contributed to record financial performance for the auto sector.

It will be interesting to see how this trend plays out with the recalls of the General Motors Co. (NYSE: GM) cars. Ford Motor Co. (NYSE: F) is actually seeing a rise in its shares after reporting strong sales trends in Europe, but Sterne Agee's report is aimed solely at U.S. vehicle sales.

Sterne Agee data shows that new vehicle prices in March were up 0.2% compared with the year-earlier period and used vehicle prices were up 0.1%.

More importantly, new vehicle prices rose by an average of 1.1% in 2013, the fifth consecutive annual increase after declining in 10 of the 11 years between 1998 and 2008. Year to date 2014, new vehicle prices have increased 0.2%.

Used vehicle prices decreased an average of 0.3% in calendar year 2013 according to the BLS, versus a 0.9% increase in 2012. Used cars are exceeding new cars in 2014 as well, as the Sterne Agee report shows that used vehicle prices have risen 0.7%. The report further says:

Used vehicle price increases have outpaced new vehicles in the five of last six months, a positive trend for new vehicle demand.

Ward also points out that U.S. dealer inventory levels ended March at 3.7 million units, the highest comparable level since 2006 — dealer inventory levels typically peak in March and move 15% lower by the end of August, and Ward expects a similar move this year.

So, how much is an average transaction price? $31,021 per unit in 2013, up 1.7% from the last year — and monthly comps have been consistently positive for more than three years. The average transaction prices was also up 1.7% in the first quarter. By maker, the report shows the following for the month of March:

General Motors average prices were up 4.1%
Ford showed an average transaction price gain of 1.2% from
The CPI Used Vehicle Price Index rose by 0.1%

Again, Sterne Agee's report said:

The gains in used vehicle prices have outpaced new vehicles in five of last six months, a favorable trend for new vehicle sales (higher relative used vehicle prices improve the trade-in value and reduce the cost for new vehicle on a trade in).

Manheim Consulting's Used Vehicle Value Index totaled 124.4 in March, up 3.3% versus the year-earlier period — the highest value since May 2012. The Adesa wholesale price reading in March averaged $10,429, up 6.0% compared to February and up 4.0% versus the year-earlier period.

It may seem silly to think that rising car prices is a good thing for you or for the economy. But consider a few things here. This helps when you want to sell your used car. This keeps the auto industry strong — which is good for jobs.

By Jon C. Ogg

Volkswagen Prices 2015 Golf GTI - Car and Driver Blog

Posted: 16 Apr 2014 09:55 AM PDT

April 16, 2014 at 12:55 pm by Davey G. Johnson

Volkswagen has finally announced pricing for the seventh-generation GTI on our shores; true to expectations, it's very much in line with current GTI pricing. The base S model sees only a $195 bump over last year's price, starting at $25,215 (including destination), while adding a few trinkets—most notably 10 horsepower and 51 lb-ft of torque. Natty plaid cloth seats remain standard fare.
The higher-nick SE examples start at $28,215, while the four-door only (presumably so Kraftwerk can enter and exit more gracefully; those guys are getting up there) Autobahn models start at $30,415.

If you want a DSG trans, it's an $1100 option. Opt for the Performance package, featuring yet another 10-hp bump, bigger brakes and a torque-sensing limited-slip diff, and be prepared to shell out $1495. The 2015 GTI goes on sale in June, and if you like sportivity, rationalism and other slightly off-kilter words the Germans like to say, you probably want one. It's okay, we want one, too.

The Basics:

An all-new 2015 Toyota Camry already? That's what some current Camry owners might think, as the current generation of this longtime best-selling sedan model has only been around for three model years. Yet today the Camry faces even stronger competition from recently refreshed versions of the Honda Accord, Ford Fusion, Nissan Altima, and others.

Toyota is in effect not resting on its laurels; it's given what it calls a sweeping redesign to the Camry for 2015—with a completely new look for the interior and exterior, added noise insulation, and upgraded driving dynamics.

While the change in appearance isn't radically different, it looks updated, more refined, and more contemporary inside and out. And the most significant change are under the skin. The Camry gets what Toyota calls an aggressive front-end appearance, with LED front running lamps plus available LED auto-leveling lamps for the low and high beams. Taillights get a new design that tapers in with the side sheetmetal, and a 'decorative garnish'—read chrome bar—runs across the trunk. Toyota calls that cue sporty, although it's a generic cliche.

The somewhat downmarket look and more 'chunky' feel of the outgoing Camry's dash have been wiped away, with a 'high-tech' look for the center stack and a newfound attention to materials and details. Upper dash areas now have soft-touch trims, and the area just ahead of the shift knob gets an enclosed bin for personal electronics, with a USB port and available wireless charging pad (as in the larger Avalon).

In all, the 2015 Camry has nearly 2,000 new parts compared to the 2014 model. Toyota says that everything is new except the roof. Toyota claims to have made some significant changes to improve the Camry's responsiveness. While the existing MacPherson strut, multi-link rear suspension layout does carry over into the 2015 Camry, a new calibration for the electric power steering and a retuned brake-booster system should help make it a better-driving car. So should a stiffer body structure and additional spot welds. As well, Toyota has added noise insulation at the floor, improved window and door seals, and redesigned the side mirrors for better airflow; all of this should help improve interior noise, which has been one of the current car's inadequacies.

What's under the hood is carried over, mostly. The 2015 Camry will remain powered by a 2.5-liter four-cylinder engine or 3.5-liter V-6—both hooked up to a six-speed automatic transmission—or in the Hybrid model, a 2.5-liter Atkinson-cycle four-cylinder and Hybrid Synergy Drive system. New to the lineup this year is a new sporty SE version of the Camry Hybrid.

Toyota has further retuned the stability control system in SE models to intervene in a smoother way. And based on the success of the sporty SE model, a new XSE model has been added to the lineup and is the sportiest Camry yet, according to Toyota. with 18-inch wheels, unique shocks, firmer suspension bushings, and stiffer springs—as well. Both of these more performance-oriented Camry models get a mesh front grille and different front fascia.

The 2015 Camry will offer more active-safety features than before, including Lane Departure Alert, a Pre-Collision System with Auto High Beams, and a Blind Spot Monitor with Rear Cross Traffic Alert. Adaptive Cruise Control is also on offer with that feature set.

Features and pricing haven't yet been announced; but with the tight competitive environment amongst sedan models, we can only see the value situation getting better. Camry SE, XLE, and XSE models now all include Optitron gauges with a new 4.2-inch TFT display in between.

Will all these changes add up to a more refined, better-driving Camry that wages a stronger fight against key rivals? We hope to update you with full driving impressions and a full review here before the 2015 Toyota Camry goes on sale this fall.

Likes:

High-mileage Hybrid model
Even sportier XSE new to the lineup
Fresh new look
Greater attention to cabin noise

Dislikes:

Rear seats don't fully fold
Unsupportive base seats
Will it feel like less of an appliance?

VW Prices 2015 Golf GTI from $24,395 - The Car Connection

Posted: 16 Apr 2014 06:00 AM PDT

Davis Adams

2015 Volkswagen GTI

Volkswagen announced the pricing schedule for the 2015 Golf GTI today at the New York Auto Show, so you can finally start saving those pennies toward a tangible goal. Much like the GTIs of the past, this seventh-generation hot hatch will come in two- and four-door models, with multiple levels of add-ons available across the board.

The base, two-door GTI S with manual transmission starts at $24,395, a $195 increase over the outgoing model. That models comes standard with the 2.0-liter turbocharged four-cylinder, producing 210 horsepower and 256 lb-ft of torque, as well as LED fog lamps and a touchscreen radio. Buyers interested in adaptive Bi-Xenon headlamps can add them for $995, and the performance package with larger brakes, limited slip and 10 additional HP can be had for an extra $1495. The DSG automatic transmission is an $1100 option.

The GTI SE starts at $27,395, and adds the sliding sunroof, keyless start, automatic headlamps and wipers, leather seats, and the upgraded Fender audio system. Opting for the performance package in the SE trim only costs $800, and also adds Dynamic Chassis Control.

Exclusive to the four-door model, the GTI Autobahn trim starts at $29,595, and adds automatic climate control, a power driver's seat and navigation to the SE trim options.

___________________________________________

Follow The Car Connection on Facebook, Twitter and Google+.

Car Prices Blog

Thursday, 17 April 2014