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Monday
Feb062012

Average Cost of New Car Rises to over $28K, Report Finds

Comstock/Thinkstock(WESTLAKE VILLAGE, Calif.) -- Consumers are now forking over more dough than ever to buy a car, an indication that the auto industry is steering back onto the road after swerving off four years ago.

J.D. Power and Associates' 2012 annual automotive industry outlook reports that it now costs on average $28,341 to buy a new car -- an 11 percent jump from 2008.

The increase in price is partly attributed to in-vehicle entertainment features that now come standard in many models.

Another reason consumers are digging deeper in their pockets than in the recent past is due to cash rebates and other incentives falling by $400 from years ago.

Naturally, the huge profits automakers are enjoying after languishing for years come with a caveat from National Automobile Dealers Association executive John Humphrey, who says, "We see increasing optimism but the auto maker discipline in production must remain."

J.D. Power also warns that the industry must be wary of consumers with dicey credit histories being given loans they can't afford.

Copyright 2012 ABC News Radio







ABC News Radio