Friday, August 3, 2012

Auto prices are going up as incentives vanish

msnbc ^ | 8/2/2012 | Paul A. Eisenstein

Yes, you probably will pay more for that new car, truck or crossover you’ve been eyeing. With U.S. sales rising and factories in many cases stretched to the limit, manufacturers have been curbing incentives and nudging prices higher, according to industry analysts.

The good news is that whatever you buy, your next new vehicle is likely to be significantly better-equipped than the product it replaces, reports J.D. Power and Associates.

Anyone watching the Olympics might get the impression this is a great time to buy, at least if a low price tag is the objective. Chevrolet, in particular, has been heavily promoting its “Total Confidence Pricing” program, implying that all buyers are getting an especially low-ball number. Other automakers have been pitching low-interest loans and other givebacks to get shoppers into showrooms.

TheDetroitBureau.com: Chrysler hot, Fiat not

But the deals aren’t as good as they might first seem, according to Jesse Toprak, chief analyst with TrueCar.com. “Even though automakers may give the impression that they are ramping up incentives spending … (they) are increasingly moving away from cash incentives and pushing finance and lease programs,” he said.

(Excerpt) Read more at bottomline.nbcnews.com ...

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