Consumers still buying new cars

February new vehicle sales were on pace to be the highest since the same month in 2000 but prices were also high, and setting records.

According to Kelley Blue Book, February’s new vehicle sales totals should top last February’s by a healthy 9 percent, at 1.37 million units sold. American Honda saw the biggest boost in sales but Ford wasn’t too far behind. Both companies saw double-digit gains from February 2015 to February 2016.

All of this good news comes at a price though: $33,781, on average. That big number is what KBB found to be the average new vehicle transaction price in February. This is a new record as well.

KBB said that average transaction prices have increased by $739 since February 2015.

Generous factory incentives are helping to keep vehicles affordable – indeed, KBB said these incentive packages are now reaching pre-recession levels.

The good news for consumers is that competition is fierce among auto makers, as all want to post ever-increasing sales numbers. This should help to keep incentives high, and deals plentiful.

Travis Credit Union’s Auto Buying Center is a great place to research and buy your new vehicle. Visit www.traviscu.org/auto to get started.

Vehicle Loans Auto Buying Center Check Rates