LUXURY VEHICLES SEE PRICE DECLINE

Despite the fact we keep hearing that the economic recovery is ontrack but just a little slower than expected and that the economic stimulus money is just now kicking in even the rich are watching their money. Used Car News just reported that The Kelley Blue Book which is the New and Used Car Dealer's Bible of car prices states that last month their was a steep decline in the price of luxury vehicles. In August, values of used luxury vehicles declined by 1.7 to 2.5 per cent slightly more than the industry average. Compared to this time last year prices are 7-10% lower on average. Consumers considering a 2009 model year luxury car can find vehicles selling 57 per cent of orginal MSRP, which is far below the industry average. Taking in consideration that gas prices often times effect luxury car prices but the big item is the unstable economy. Keep that Honda and Toyota it will probably be worth more than the cadillac, lexus, or bmw.

HOW MUCH IS THAT NEW CAR GOING TO COST

The price of a new car has risen to $30,369.00 from $29,882 in 2011. Hundreds and thousands of dollars or often added into the purchase price even after you have come to an agreed price. This practice enables the dealer to enhance his profit on each unit. The extra features might be worth it in some cases but many first time new car buyers want the new 30.000 investment to last a long time and will pay for many unneeded over priced options Checkout the below examples NITROGEN TIRE FILL FOR 4 TIRES $245.00 REGULAR AIR IS ALL YOU NEED TIRES HAVE USED REGULAR AIR FOR 75 YEARS RIP OFF UNDER COATING $1500.00 ALL NEW CARS COME WITH A FACTORY UNDER COAT THAT PROTECTS CARS NOT NEEDED ELECTRONIC FILING AND TRANSFER $50.00 GO TO DMV WITH THE FORMS AND DO IT YOURSELF TITLE AND REG FEES $150.00 DO IT YOURSELF GO TO DMV CAR SERVICE $250.00 YOUR INSURANCE AND AAA CAR CLUB WILL COVER EVERYTHING YOU NEED THE DEALER GETS 1/2 OF THIS FEE IN COMMISSION LOAN ORGINATION FEE $295.00 GO TO YOUR BANK OR CREDIT UNION AND ARRANGE FINANCING YOURSELF DESTINATION CHARGE $795.00 WHY SHOULD YOU PAY FOR THE DEALER TO TRANSPORT A CAR TO HIS LOT: DOES WALMART CHARGE YOU FOR THE TRANSPORT OF MILK AND FOOD EXTENDED WARRANTY $3500.00 MOST NEW CARS HAVE A FACTORY 50,000 MILE WARRANTY IN PLACE The country is in an economic depression the new car dealers seem to want to pass on their losses to the few people that can afford a new car by these add'ons. If you have a good credit score you will be able to get many of these extra's removed from the purchase price if you haggle.

NEW CAR PRICES SURGE USED CARS LOWER

The Wall Street Journal reported on September 9, 2012 the summer rally for new cars is on track. New Car sales well above projections are soaring. The question one must ask yourself is? Are people buying out of neccessity or buying because of incentives from GM, Ford and Chrysler. Today, it was noted that GM loses 49,000 per volt that is sold. How, can you repay bailout money losing 49,000 per unit you tell me. Toyota is noteing a slowdown in the sell of the Hybrid Prisus. Manheim Auction and Marketing reported a decline in the wholesale price of used cars. The Used Car Value Index droped 120.7 or 2.4 per cent. The index adjusts prices for mix mileage and seasonality. This is the 5th straight month of decline. August's month was substantially less than what occured in each of the prior three months. The average auction price for rental cars and risk units slipped again in August. End -of -service units saw lower than expected sales price nationwide.