Rising Costs of Buying a New Car

A lot of people think that they’re more likely to get a good deal on a new car these days than they were before. After all, they are armed with more information than before, which helps greatly in the negotiating process. Besides that, many manufacturers offer things like zero percent financing and cash rebates as incentives for buying a car this year. Some companies have even lowered the actual sticker price on the new cars in order to relate more to the actual price they’re getting sold for after rebates and negotiation. Drowning companies like GMC and Ford are desperate for sales, and the tale is that car companies are losing money this year.

Why is it, then, that prices are rising while there are more deals available than ever?

One reason is that we want the best there is. Because of this, instead of being stocked with the base level of car model, car dealerships will tend to line their rows with the higher levels that often cost five to ten thousand dollars more. People want the OnStar and the subwoofer and the DVD entertainment system with the nine inch LCD display navigation system.

Another reason is that most of the cars on the market are imports. How many people do you know who have Toyotas? Okay, what about Fords? Sales for American companies are falling off, and will probably continue to do so, so Americans are paying higher import prices.

There is some good news, though. Since interest rates and car prices are so much higher now, manufacturers are offering more deals, especially some really good lease deals. It’s true that those deals often come with mileage requirements that can be restricting, but it can be a great alternative to forking over everything in your wallet to buy the same vehicle.


Fashun Guadarrama.

About the Author:

Austin Davis, consumer car repair advocate. "Hi there! I love to help people solve their car repair problems and I hope my site was helpful to you today. Thank you for stopping by."