New car sales are down but prices keep rising

Given how much the average new vehicle transaction price is nowadays, new car sales may not be setting records this year.

According to Kelley Blue Book, Americans paid an average price of $34,552 in April 2017. Most manufacturers have increased by $579 (up 1.7 percent) from April 2016. These price increases are taking place as new vehicle sales decline. Kelley Blue Book analyst Tim Fleming says price increases “appear to be primarily driven by the shift in demand toward SUVs … Kelley Blue Book anticipates average transaction prices will likely begin to decrease when the sales mix of SUVs eventually levels off.”

Meanwhile, some manufacturers are already offering steep incentives to move new vehicles off of dealer lots. This excess inventory may be beneficial for consumers looking for a sweet new ride – putting buyers in a better negotiating position.

We offer great low rates, extended terms and, if you have equity in your car, you can refinance and take cash out to fund any number of springtime projects and excursions! Visit your nearby Travis Credit Union branch or call our Member Service Center at (800) 877-8328.

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