The automotive industry saw strong new and used vehicle sales in August, and according to a few reports, prices also remained high.
The latest National Automobile Dealers Association Used Car Guide showed that pent-up demand and low interest rates are driving automotive sales forward throughout the second half of 2013. However, this is also causing used vehicle prices to go up.
Jonathan Banks, executive automotive analyst for the NADA Used Car Guide, said in the September edition of Guidelines that consumer demand for used vehicles has been growing this year, which is contributing to strong prices for used vehicles.
According to NADA, used vehicle prices have been high throughout the first eight months of 2013, as prices averaged $15,113 during that time, up slightly from the same period in 2012 and up $463 form 2011's average. The report showed that while prices slipped 1.1 percent in August, the historically prices are higher that year's past. With the summer buying season coming to a close, prices will likely ease, but still remain above levels seen a year ago.
"NADA predicts that the rate of decline will be considerably less than what has been recorded for this period in large part because a ravenous consumer appetite for used vehicles is being fed by incredibly favorable credit conditions," Banks said.
New car prices also up
A separate report from TrueCar.com showed that the vehicles that were purchased in August had a record-high average transaction price.
According to the report, the average transaction price for light vehicles across the country was $31,252, up 3.2 percent from a year before and up 0.5 percent from a month before. The previous all-time high was $31,228, which was achieved in December 2012.
"Historically low interest rates as well as very attractive lease specials fueled by high resale values are enabling consumers to buy more expensive vehicles while still keeping payments at affordable levels," said Jesse Toprak, senior analyst for TrueCar. "It's good day at the office for the manufacturers when the sales continue to grow double digits while transaction prices reach record highs."
The report noted that Chrysler, Ford, Honda, Nissan and Volkswagen all achieved record-high transaction prices during the month.
As consumers are paying more for their vehicles, preserving those high prices is critical, especially if they are looking to sell down the road. Husky Liners® custom fit floor mats will ensure a vehicle's interior stays as clean as the day it was purchased.