May 2014 car sales, prices continue to rise as loan terms lengthen

May 2014 car sales, prices continue to rise as loan terms lengthen
2014 Kia Optima | new car sales price: Car News- CarsGuide
There's No Such Thing as… Car Prices | uneconomical
2015 Ford Mustang Base Price Revealed! - Car and Driver Blog

Posted: 03 Jun 2014 12:05 PM PDT

Nelson Ireson

Follow Nelson

Add to circle

2015 Audi A7

Enlarge Photo

So far, 2014 has been a good year for car sales, with monthly tallies showing growth at almost all major carmakers, and predictions sunny for summer. May's car sales figures reflect a continuation of that trend, with many brands reporting their best sales month in years.

General Motors and Toyota report their best sales since 2008, while Ford Motor Company claimed its best month since 2005. Audi and Porsche had their best sales month ever in the U.S., while BMW reported its best May results ever.

On top of the strong sales results, new car transaction prices rose 2 percent in May, according to Kelley Blue Book. Premium models are expected to drive further sales growth throughout 2014, according to JD Power and LMC Automotive. LMC Automotive's senior vice president of forecasting, Jeff Schuster, said, "Nearly one-half of the new-model activity in 2014 will be premium vehicles, which is expected to create new competition for mainstream segments as premium price points cross into those of many non-premium models."

Kelley Blue Book senior analyst Karl Brauer notes the role of premium vehicles in the market, saying, "Small and mid-size car share has declined slightly, as car shoppers opt for small and mid-size crossovers, helping boost this month's average transaction price."

Supporting this increased appetite for more expensive, more premium vehicles is a trend toward longer loan terms in the automotive financing market. Experian Automotive reports the average loan term has reached a record high of 66 months, while loans with terms of 73-84 months grew 27.6 percent in the first quarter of 2014, accounting for 24.9 percent of all new vehicles loans issued. Likewise, the average amount financed is also at an all-time high of $27,162 through the first quarter, a rise of $964 from 2013.

For a look at how the plug-in electric car market fared in May, read the analysis at Green Car Reports.

Here are the sales figures reported by automakers for the month of May 2014:

General Motors: GM [NYSE:GM] sold a total of 284,694 vehicles in May, a rise of 13 percent from May 2013. Chevrolet sold 205,010 of that total, up 14.2 percent. GMC accounted for 45,039 sales in May, a gain of 8.3 percent. Buick sold 19,957 cars, gaining 11.0 percent, and Cadillac sold 14,688 cars, rising 6.4 percent.

Ford: Ford Motor Co. [NYSE:F] says its combined Ford and Lincoln brands sold 254,084 vehicles in May, up 3.0 percent from the year-ago period. The Ford brand accounted for 245,239 of those sales, a year-on-year gain of 2.5 percent. Lincoln rose 21.1 percent against May 2013 with 8,845 vehicles sold.

Toyota / Lexus / Scion: Toyota recorded 243,236 vehicles sold across its three U.S. brands in May, a rise of 12.6 percent from last May. The Toyota division sold 216,315 vehicles, a 12.2 percent gain. Lexus division sold 26,921 cars, a 16.6 percent rise.

Chrysler: Across its four brands, Chrysler sold 194,421 vehicles in May, a 17 percent gain from last May. Chrysler's Jeep brand led the company's sales rise in May, up 58 percent to 70,203 vehicles. The Chrysler brand fell 22 percent to 22,592 vehicles sold. Dodge brand vehicles sold 57,923 examples, a 3.0 percent gain. Fiat sold 4,771 cars, up 18 percent. The Ram Truck brand sold 38,932 trucks, gaining 19 percent.

Honda / Acura: American Honda sales rose 9.0 percent in May, to a total of 152,603 vehicles. The Honda division accounted for 137,928 of those sales, rising 9.8 percent from last May. Acura rose 2.2 percent on 14,675 vehicles delivered.

Nissan / Infiniti: Total Nissan Group sales in May rose 18.8 percent to 135,934 vehicles. Nissan Division sold 125,558 vehicles, rising 17.8 percent from May 2013, while Infiniti sold 10,376 vehicles, a 31.4 percent gain.

2014 Kia Optima | new car sales price: Car News- CarsGuide

Posted: 20 Jan 2014 12:00 AM PST

Kia has rolled out the revised version of its flagship Optima, with the good-looking Peter Schreyer designed sedan getting further cosmetic tweaks, plus extra equipment -- including high-end safety technology for the range-topping Platinum spec -- with small prices rises.

The cosmetic refresh includes restyled grille and front bumpers, new headlight clusters -- with xenon lights, LED daytime running lights and quad LED foglights, according to model -- with the tail getting a new boot lid with integrated spoiler and a redesigned diffuser.

Appearing for the first time on the Platinum as standard will be blind-spot detection and rear cross-traffic alert systems -- making it easier for the driver to avoid unexpected surrounding traffic -- plus modern quad-type LED front foglights. The new features join with hill holder and the array of twin front, side and head airbags to make the five-star ANCAP rated car even safer.

Both the Platinum and the mid-spec SLi also sport redesigned LED tail-lights, while front parking sensors now join the standard rear ones for the entire range, starting with the base model Si. Reshaped bumpers and rear diffuser, plus new alloy wheel designs -- 17-inch for the Si and 18-inch for SLi and Platinum -- complete the exterior updates.

The interiors have been given a makeover, with a fresher layout for the centre stack and new accents and materials, with the SLi getting the biggest upgrades and moving closer to the Premium level with leather upholstery and the top-spec's Infinity audio system.

Under the bonnets, the GDI 2.4-litre four-cylinder petrol engine carries on, delivering 148kW of power at 6300rpm and 250Nm of torque at 4250rpm, getting that to the front wheels via the six-speed sports automatic transmission with F1-style paddle shifters on the steering wheel -- which itself bristles with remote controls for audio, phone and information. Fuel economy remains at 7.9l/100km for the combined cycle.

Kia Australia chief operating officer Tony Barlow said the revision would offer more sophistication while retaining a high-value proposition. "With the latest version of the Optima, Kia continues to advance value to new levels of sophistication without any compromise on safety or core values," Barlow said. "The Optima is the cornerstone of Kia's design evolution and epitomizes the brand's goal of building highly-captivating, value-positioned vehicles. Along with Kia Australia's five-year unlimited kilometre warranty, five-year capped price servicing, roadside assist and Family Like Service commitment, the styling story on Optima paints a compelling picture."

Despite the extra features -- plus currency exchange rates not favouring the Aussie dollar -- price rises on the Optima have been restrained, with the base Si asking just $300 more, the Sli $1000 and the Platinum $1200.

2014 Kia Optima prices

Kia Optima Si	$30,990	(up $300)
Kia Optima SLi	$35,990	(up $1000)
Kia Optima Platinum	$40,490	(up $1200)

This reporter is on Twitter: @KarlaPincott

There's No Such Thing as… Car Prices | uneconomical

Posted: 29 May 2014 05:05 AM PDT

Home > Inflation > There's No Such Thing as… Car Prices

A nice reminder that price index data is a work of ~~fiction~~ statistical genius on which it is perfectly safe to base macroeconomic policy. Reading through the ONS announcements today, this is how they describe the new methodology for determining car prices used in the national accounts:

4.2.2 New approach to be implemented in September 2014

For the new approach the list prices from Glass's Guide are reduced to take into account discounts negotiated at the point of sale. The percentage discount applied for each model is partly offset by an uplift to account for point of sale accessories/optional extras purchased.

Discussions with industry experts including Glass's and HM Revenue and Customs (HMRC) established that data on discount prices and amount spent on optional extras isn't available. As an alternative method, "target price" information from What Car magazine (monthly publication) has been used to estimate a best achievable discount. The target price is a guide to a typical achievable discount based on a team of What Car mystery shoppers (people posing as customers) who haggle with dealers. A discount percentage for each model is calculated using the target price data. Since this represents the best discount available, the discount calculated has been reduced by 30% to take into account not all customers will achieve this price (i.e. not everyone will negotiate the optimum discount).

"We took the figures for discounts out of a magazine and knocked 30% off for good measure." Why 30%? Don't ask too many questions.

The discount applied is further reduced to account for point of sale accessories/optional extras purchased. Research suggested metallic paint is the most popular extra added. This option isn't typically available by moving to an improved model in the range which other optional extras often are. Looking across a range of models the cost of metallic paint typically offset the original What Car discount price by approximately 35%. ONS have therefore further reduced the discount calculated by a further 35%. The What Car best achievable discount price has therefore been reduced by 65% overall.

"Then we knocked off another 35%". Let's hope there are no spreadsheet errors.

In fact it's even worse: this method is used to calculate the deflator used for car sales, which is applied to the survey data on the volume of car sales to produce current price (nominal) spending. The ONS really does produce RGDP first and NGDP second for some (many?) sectors. The more I learn about price index and national accounts methodology, the more attractive nominal wage targeting becomes!

2015 Ford Mustang Base Price Revealed! - Car and Driver Blog

Posted: 20 May 2014 07:32 AM PDT

Better settle in, folks, because it appears Ford plans to drag out the release of 2015 Ford Mustang pricing information. Today, the company dangled a single number: The one attached to the base, 3.7-liter V-6–powered Mustang. What the convertible versions, turbo four-cylinder EcoBoost, V-8 GT, 50th Anniversary Edition coupe, or the SVT Mustang will cost is still a mystery.

But all is not hazy—we now know that the starter car will run $24,425 when it arrives later this year, and that order books are open as of today. Standard equipment on the V-6 model includes a backup camera, HID headlights, a tilting-and-telescoping leather-wrapped steering wheel, proximity entry and push-button start, and Ford's SYNC infotainment system with a 4.2-inch display and two USB ports. We previously learned what a few of the Mustang's key options will be, as well as how much some of them will cost. Oh, and that the every GT will include a standard line lock for sweet-ass burnouts.

The level of standard kit on the V-6 car—not to mention the all-new chassis with a fully independent suspension—makes the $1090 increase over the least-expensive 2014 Mustang more than palatable, and buyers will be able to saddle their ponies with richer options than before. Add-ons include an eight-inch touch screen with navigation, blind-spot monitoring, adaptive cruise control, a paddle-shiftable automatic, and selectable drive modes; we don't yet know what these will cost. A 50 Years appearance package (which differs from the limited-edition 50th Anniversary model) for EcoBoost and GT models will run $1595; it will include a chrome-trimmed grille, 50 Years badging, special wheels, anniversary floor mats, and some special interior stitching.

Output from the three available engines is only estimated at this point, with Ford stating the V-6 will make more than 300 hp and 270 lb-ft, the EcoBoost four more than 305 hp and 300 lb-ft, and the GT's V-8 more than 420 hp and 390 lb-ft.

Amusingly—and you can bet this was on purpose—the 2015 Mustang's base price is $125 lower than the 2014 Chevrolet Camaro's. We might still be waiting on final output figures for the Mustang's three available engines, but Ford appears to already have Chevy beat on one front—at least until the bow-tie brand prices the 2015 Camaro.

Car Prices Blog

Wednesday, 4 June 2014