<b>Car Prices</b> Are Growing Faster Than Our Salaries, But We've Got <b>...</b> |
- <b>Car Prices</b> Are Growing Faster Than Our Salaries, But We've Got <b>...</b>
- Market Forces: New-<b>Car</b> Sales Surge Making Used <b>Cars</b> Cheaper
- Japanese <b>Car</b> Makers Cut Parts <b>Prices</b> In China After Anti-monopoly <b>...</b>
- Stable gas <b>prices</b>, younger buyers, expected to push <b>car</b> sales higher
- Used <b>car prices</b> forecast to drop as supply increases | Driving
- <b>Car prices</b> hit new record lows: Car Advice- CarsGuide
| <b>Car Prices</b> Are Growing Faster Than Our Salaries, But We've Got <b>...</b> Posted: 08 Aug 2014 09:03 AM PDT If you're a new car shopper, we have good news and bad news. How's about we start with the bad news first? Car prices are creeping up faster than household income -- and they have been since the Great Recession. Market research firm Requisite Press says that car prices rose 8.9 percent between 2009 and 2013. However, the U.S. Bureau of Economic Analysis and the Census Bureau say that median household income grew by just 4 percent during that same period. READ: The 17 Most Important New Cars Of 2015 What does that mean in lump sums? As of July, median household income was $53,891. Meanwhile, the cost of an average new car was $30,210. Taking disposable income into account, the average consumer can afford just 53.5 percent of a new car. Consider this: if you were an average consumer, and you put down 20 percent of the price of your new car, you'd be left with a loan of $24,168. Spread out over four years (the maximum recommended length of a car loan), at today's average interest rate of 4.14 percent, you'd shell out a hefty $547.21 per month for 48 months. Ouch So, what's the good news? ALSO SEE: 2015 Mercedes-Benz C-Class First Drive Thanks to the internet, consumers have many more ways to nab great deals. You can do that, for example, right here at The Car Connection by visiting our "New Cars" section, identifying the make and model you want, and hitting the "Request a quote" button. However, Requisite Press' Phil Kelton also suggests emailing dealerships directly, asking them for their best possible price on your vehicle of choice. If you live in a metro area with a number of nearby dealerships, this approach will allow you to request multiple quotes in a matter of minutes. It's far easier than schlepping from showroom to showroom, and you'll avoid the haggling that makes many of us want to throw up our hands and take buses for the rest of our lives. And if you're a serious shopper, don't forget to engage lenders, too. Use a site like Bankrate to see what loan terms are available, then visit Lending Tree, CarsDirect, or a similar site to solicit offers from multiple banks. If you go to a dealership without being pre-approved for a loan, you're putting yourself at the dealership's mercy. Its loan officer may be able to offer a decent rate, but if you have nothing to compare it to, you'll never know. ___________________________________________  |
| Market Forces: New-<b>Car</b> Sales Surge Making Used <b>Cars</b> Cheaper Posted: 07 Aug 2014 02:22 PM PDT It's been a very strong year—a very strong several years, really—for new-car sales. New-vehicle sales continue to be the bull-market bright spot of the economy, with analysts still predicting annual sales headed past 16 million vehicles this year. July sales factored in as the best for the month since 2005, and strong summer sales are pushing predictions higher toward a near-record 17-million rate, unparalleled since the early 2000s. The flip side is that the used-car lot is getting sidelined in this latest market boom. and trade-ins are flooding the market. And the laws of supply and demand are taking over, pulling demand—as well as prices—downward as supply continues to surge. And used cars—especially cars, more than trucks—are getting cheaper. READ: The 17 Most Important New Cars Of 2015 "Accelerating depreciation" for used cars Used vehicles from model years 2009 through 2013 have been going through a period of "accelerating depreciation," as the pricing authority Black Book puts it. Such models have fallen in value by 1.5 percent, on average, just during July, and the company expects overall used-vehicle depreciation for 2014 to be at 13.5 percent—far more pronounced than it's been in recent years. "We anticipate this trend of accelerating depreciation will continue through the rest of the year, with smaller cars and luxury segments seeing higher levels of depreciation," said Ricky Beggs, the editorial director at Black Book. As Black Book notes—citing low fuel prices and incoming 2015 models as factors—eleven of the thirteen strongest-performing segments for the past month include trucks. The other two were Sporty Cars and Premium Sporty Cars. ALSO SEE: 2015 Mercedes-Benz C-Class First Drive Vans, pickups, compact SUVs still strong in the used market Through July, versus last year, the average late-model vehicle in this model-year range has lost nearly 12 percent of its value. Import-brand cars and trucks actually lost more value than domestic-brand cars and trucks. Full-size vans, compact SUVs, and pickups of all sizes are among those with the smallest plunge in price this past year, while many types of cars, SUVs, and crossovers have taken double-digit depreciation. Looking at this past month, mid-size sedans, like the Honda Accord, Toyota Camry, Nissan Altima, and Volkswagen Passat are seeing the steepest depreciation. Among trucks, full-size SUVs have been depreciating at the steepest rate; prices on such models, including the Nissan Armada, Dodge Durango, Chevrolet Suburban, and Ford Expedition, among others, fell by 2.1 percent in July, while the average price of such a vehicle is down eight percent versus the same time a year ago. Market trends aside, there's a clear message here for anyone looking to replace what's in their driveway now: If you can do without that new-car smell, it's a great time to go with a late-model used car or truck. ___________________________________________ |
| Japanese <b>Car</b> Makers Cut Parts <b>Prices</b> In China After Anti-monopoly <b>...</b> Posted: 09 Aug 2014 08:18 AM PDT  Thomson Reuters A worker walks in front the Toyota Motor Corp stage prior to the opening of the 15th Shanghai International Automobile Industry Exhibition in Shanghai GAC Toyota Motor Co, Toyota's joint venture with China's GAC Group, and Guangqi Honda Automobile Co, Honda's venture with GAC, both said late on Friday they would cut spare part prices due to the investigation. Nissan's joint venture with China's Dongfeng Motor Group Co said it paid close attention to the regulator's suggestions and was actively studying improvements. The moves came on the heels of price cuts by foreign luxury brands including BMW, Mercedes-Benz, Audi, Chrysler and Jaguar Land Rover over the past month, as China's price regulator, the National Development and Reform Commission (NDRC), steps up scrutiny of the industry. China has also wielded its anti-monopoly law against other industries, including milk power and software. It targeted multinationals Mead Johnson Nutrition Co and Danone SA, which the regulator slapped with hefty fines, as well as U.S. chipmaker Qualcomm Inc, which faces the prospect of a $1 billion fine. China's anti-trust investigations target monopolistic practices in general and aim to promote fair competition and protect consumer interests, China's Ministry of Commerce spokesman Shen Danyang said in a statement posted on the Ministry's website. Both domestic and foreign firms must bear the due liabilities if they break the law, Shen said. Industry experts say automakers have too much leverage over car dealers and auto part suppliers, enabling them to control prices, considered as a violation of China's anti-trust laws. China, the world's biggest auto market, is dominated by foreign brands. (Reporting by Samuel Shen and Pete Sweeney, editing by William Hardy) This article originally appeared at Reuters. Copyright 2014. Follow Reuters on Twitter. |
| Stable gas <b>prices</b>, younger buyers, expected to push <b>car</b> sales higher Posted: 05 Aug 2014 11:22 AM PDT TRAVERSE CITY, MI — (WWJ) Industry experts see stronger car and truck sales continue for a while, with a few possible reasons for concern. The year got off to a tough start, mostly because of rough weather. A warmer spring brought buyers back into showrooms, and they've pushed the annual rate over sixteen million ever since. "We're expecting that sales will be about 16.3 million when all is said and done<" says AutoTrader.com senior analyst Michelle Krebs. "So, a good year." The second half of the year, says Krebs, is generally a good time for pickups. It could be pushed on even more this year, as Ford brings a new F-150 to market. Ford's Chief Economist Emily Kolinski-Morris expects an improving housing market to help pickup sales. But that follows a period of time when truck sales were strong, even with a weak housing industry. "We have seen, fortunately, the activity in the mining and energy sectors picking up a great deal of that slack," she said. "So, the full size pickup segment has actually performed relatively well, even in the absence of a strong housing recovery." Trucks and SUV's–particularly smaller crossovers–have been a big part of the market this year. That's expected to continue. Steven Szakaly, Chief Economist for the National Automobile Dealers Association, sees gasoline prices remaining stable for several years. "We have significant tight oil, shale oil," he said. "These developments are very positive in the long term." Not so positive, says Szakaly, is an unemployment rate that's fallen slower than economists would like. Some who are older, or have been out of work a long time, may see their lives changed permanently. "Many of people who were in the labor force, are not likely to come back." That, Szakaly says, could put a chill on car sales. "As labor force declines, commuting will decline, and clearly people will not be buying as many new cars or used cars as before." Other unknowns include the impact of car sharing, and telecommuting. Both could mean consumers need fewer new cars. Experts speaking at the conference, however, to believe that young people remain interested in purchasing new cars and trucks. It's a matter of lower paying jobs, and higher student loans. But, we've seen sales among the "Millenials" rise so far this year. That fits in with a drop in unemployment among the young, and a rise in their standard of living. "You get a job, pay your student loans off," said analyst Jeff Schuster of LMC Automotive. "You start to have families. You start to have to run around with the kids. I think that all equates to a positive environment for the auto industry." The auto industry remains a cyclical business. Often downward cycles are triggered by outside events. So far, those events haven't had much of an impact, says Ford's Emily Kolinski-Morris, but history has shown that can change quickly. "Of course, we can't understate that at the moment, with the situation in the Middle East, the situation going on with Russia and Europe. All of those have the potential to create some unforeseen consequences." Connect with Jeff Gilbert |
| Used <b>car prices</b> forecast to drop as supply increases | Driving Posted: 05 Aug 2014 10:26 AM PDT Used-car prices in the U.S. are poised to fall as the supply increases because rebounding new-car sales are putting more trade-ins on dealer lots, TrueCar Inc.'s ALG division said. The number of used vehicles available in June reached a low point because of poor sales of new cars and trucks from 2008 through 2012 and the federal government's 2009 "cash for clunkers" program that took about 700,000 vehicles off U.S. roads, ALG said in a statement. Greater supply will push prices down 5.2 per cent by 2017, according to ALG. "The continued strength of new-car sales is increasing the availability of high-quality used cars as shoppers continue to trade in their old vehicles," Larry Dominique, president of the Santa Barbara, Calif.-based division, said in the statement. "Additionally, because of the popularity of short 24- and 36- month leases, the drought of used-car supply is already starting to subside." Widely available credit, low interest rates and a rebounding U.S. economy have contributed to five straight months of U.S. new-vehicles sales at an annual rate of more than 16 million. Auto leasing at the highest rate in years also has boosted deliveries. Analysts predict 16.3 million total new-vehicle sales this year, the most since 2006. ALG estimated that the average new vehicle will retain 49.4 per cent of its value after three years by 2017, down from 54.6 per cent in June. By 2019, the average residual value might dip to 46 per cent, where it was before 2008, the TrueCar unit said. Lower residual values could draw drivers away from new cars and toward used vehicles, Dominique said in the statement. "It's really just economics 101," said Kevin Tynan, auto analyst for Bloomberg Intelligence. "Greater supply of these used cars will inevitably create weaker prices in the used-car market, and that'll expand the affordability gap between new and used." ALG expects automakers to boost incentives on new vehicles to maintain their sales pace, Dominique said. Tynan said that "short of throwing loads of cash at the problem," there's not much carmakers can do. "It's just one of those cyclical things they'll have to ride out," Tynan said. The Manheim Used Vehicle Index, which measures used-vehicle pricing, showed a June score of 124. That was down from 124.9 in April and from a high of 127.8 in May 2011. The index has stayed above 120 for all but three months since October 2010. Before the 2008 economic slump, the index had never topped 117.4. |
| <b>Car prices</b> hit new record lows: Car Advice- CarsGuide Posted: 01 Aug 2014 07:00 AM PDT New-car affordability hits 38-year high as prices hit 20-year lows.
Ford Focus ST hatch
|
Add to circle
| You are subscribed to email updates from car prices - Google Blog Search To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
No comments:
Post a Comment