Buying New, Expect to Pay More

If you're in the market to buy a new vehicle, expect to pay more. The average transaction price is up about $1,800 from a year ago, according to Power Information Network.  In fact, the average price of a  new-vehicle rose by 6 percent, up to $30,002  in January - when compared to the same time period last year. 

Moreover, with automakers building less vehicles, healthy incentives to move the metal --- have been cut drastically. Also the shaky economy has caused more consumers to forgo making major purchase decisions, thus causing the average transaction price to rise.    

Transaction prices rose even more for the Ford, GM and Chrysler. Detroit's average price increased by 11 percent in January, while the Asian and European brands increased by 5 percent and 3 percent, respectively. This transactions prices are also a result of a wave of new core products being offered by the domestic makes. For instance, currently GM is offering no national rebates to move the hot-selling Chevy Camaro. Thus, this is causing the drive forward in new-vehicle prices. Conversely. Toyota is offering cut-rate financing on a number of its vehicles affected the continuous mass of recalls they've had. This is sure to drive down the average transaction price of Toyota's vehicle.

Average transaction price, U.S. vehicles
Jan. 2010- $30,002	$30,002
Jan. 2009- $28,214	$28,214
Jan. 2008- $28,522	$28,522
Jan. 2007- $28,543	$28,543
Source: Power Information Network