New car prices have stabilized after rising quickly coming out of the recent recession, a new report shows.
A study by market research firm J.D. Power and Associates found that the average transaction price for a new automobile year-to-date is $28,013, down slightly from the $28,337 logged for all of last year.
It's the first time the price has dipped since 2008. The average transaction price increased 11% between 2008 and last year as drivers of aging cars came back on the market for new vehicles and manufacturers slashed sales incentives. In 2008, the average incentive per car sold was $3,018. By last year, that had dropped to $2,686.
Also, J.D. Power, which used data from 9,500 dealers for its report, noted that automakers were selling cars with more options and equipment, a trend that also contributed to higher transaction prices.
But this year, prices have leveled because automakers are discounting more and providing more incentives.