Automakers: August Sales Year's Highest; Car Prices Rev Buyers
The average sticker price for new vehicles sold in August was at an all-time high of almost $29,000 as consumers snap up luxury cars or load
non-luxury vehicles with expensive options, according to USA Today.
The average actual price paid by consumers in the first half of the month was $23,302, says CNW Marketing/Research, second only to May's average. Buyers in all ranges appear to have been active in August.
Automakers and Wall Street predict August car and truck sales will be the year's highest, with a likely annual selling rate of 18 million, up from 17.3 million in July and
about even with last summer.
Automakers attempting to clear out 2003 models and move early '04 models have been pulling buyers in with incentives averaging $4,200 a vehicle. But about two-thirds of the incentive money is being used to buy more expensive vehicles than planned, something automakers have been banking on, USA Today said.
CNW found that while the average sticker price is up 8.3 percent from a year ago and the price paid is up 7 percent, buyers' average income is down about 11 percent, meaning buyers are
spending more of their incomes on cars. "It's human nature to buy more when someone makes it easy for us, even when it's not good for us," says consultant Veronica Hanslow, who studies consumer behavior. "It's the 'supersize it' mentality."
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