WASHINGTON, DC - Inflation rises almost 1% due to hike in car prices. New car prices, on average, increased 2.8% in September, the largest increase in 16 years. The cost of SUVs and Trucks increased 3.5%, the largest jump in 21 years (1).
Price Analysis
The biggest gain in car prices came from Honda, Toyota and Nissan. While the domestic cars, still struggling with mediocre sales, held steady. The demand for Honda, Toyota and Nissan are increasing prices at dealerships. The prices for the SUVs can be attributed to the strong increase in demand for SUVs, as first reported on our car price blog two week ago, when gas prices started to fall. You’ll find your best deals with the Ford and GM vehicles heading into this month. Expect to pay a little more at other dealerships.
1) [source, chicago tribune]