New Car Prices Hit Record Highs
Talk about sticker shock!
Car prices are at their highest levels in history.
In May, the average price of a new car was $29,817 - up $608 from a year ago and $215 more than the previous month's prices.
Some manufacturers have raised prices more than others.
Ford's average price is $32,885 - a 5.2% increase from last year.
Hyundai and Kia have the lowest average prices with a current average of $19,217.
These nasty sticker prices reflect a tight supply for new cars thanks to the earthquake in Japan.
So what should a car buyer do? If you can wait, your best bet may be to buy at the end of the year when supplies are expected to be back to normal.
You can also look forward to lower prices on any leftover 2011 models.
My Recommendation for Car ShoppersTrueCar, Edmunds, and 1-800 Car Show are the quickest way to see the lowest car prices in your area. These sites show you no-haggle prices from dealers closest to you - and the deals are usually really good. This should be the first step you take when negotiating your car price. Follow this up with my checklist to make sure you squeeze out every last bit of savings.
California Residents - Important:There is a new online car buying service called Roadster, available only to California residents, which I highly recommend you try - especially if you hate the stress of haggling with a car salesman. They provide an expert concierge who negotiates the price of the car and delivers it to your home with zero hassle - you never have to interact with a dealership. Here is my in-depth review of Roadster and why I recommend it.
- Gregg Fidan
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About: Gregg Fidan
Gregg Fidan + is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.
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