Average Cost of a New Car Reached Four Year High Last QuarterBefore you buy it, you'd better TACH-TOC-IT: BEFORE you fall in love, MAKE SURE you KNOW the Total Ownership and Operating Costs for your choice of car, suv or truck.
Washington DC November 17, 2005; The AIADA newsletter reported that the average cost of a new car during the third quarter was the highest in four years, reports USA Today.
The study was done by the Comerica Auto Affordability Index, who reported the average price to be $27,958, up 6 percent from last year.
Comerica says the main reasons for the high prices are increased financing costs and because “consumers have used incentives to upgrade their vehicle choices.” Comerica’s chief economist Dana Johnson also noted that car buyers have purchased more expensive cars lately.
"It’s certainly not surprising that financing costs have gone up," Johnson said. "What surprised me is that the average amount spent per car rose quite significantly in the third quarter."