A new report from industry analyst Zacks.com is revealing some big news about current car pricing, which can really influence what happens for new car buyers trying to finance a 2011 vehicle or other model at a local lot. The analyst firm also provided some numbers on sales and incentive spending among top auto makers.
A June 3 announcement covering the report from Zacks shows total U.S. auto sales down 3.7% over last year, with increased sale prices and slashed customer incentives playing a big role. With American families trying to finance a car purchase on much less, rising prices have had a dampening effect on overall demand for the newest technology for the road.
The report cites TrueCar.com, an auto information firm, in showing rises in transaction prices almost across the board from domestic and foreign manufacturers, with Toyota’s prices increasing 1.6% overall, and Honda’s prices up 2.6%. Even Ford, according to these numbers, hiked prices an average of 1.3%.
Accompanying numbers showed drastic reductions in the kinds of cash-back and incentive programs that pull customers into manufacturer lots. Data showed average incentives reduced by 13%, with big reductions in givebacks from the Japanese car companies: Toyota, Honda, and Nissan have slashed incentive spending by over 20%, according to numbers from Autodata Corp.
Additional information reveals more about the winners and losers in auto sales. For domestic makers, it seems that Chrysler has won out with May sales increases that analysts attribute to popular Jeep models and new redesigns for 2011 cars. Ford and Chevrolet sales both dropped. Among international car makers, “big three” firms from Japan all reported decreases in sales, where Daimler AG scored a 4.7% increase, and Korean manufacturer Hyundai enjoyed soaring sales numbers up over 20%, with Kia sales climbing an impressive 53%.
Some of this information from May reports can be pretty useful to those who are visiting local dealerships looking for good auto financing deals, where lowered incentives can make buyers and sellers scrap harder for the financial edge. Pre-qualification and shopping around to third party lenders can help you keep your final price lower and trim some dollars from monthly payments in your auto financing contract; bringing a bigger down payment can similarly lower total interest over the term of your car loan. Make sure you have the tools that you need to get the best deals in June.