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Edmunds.com: Overall Car Prices Up $150 in May

May 16, 2011

Dealer Magazine gives us the current analysis of automotive sales thus far in May. While prices fluctuate between gains and losses for certain companies and car models, overall growth is estimated to be around $150 for the month to date. How does this survey compare to sales at your own dealership? Leave your comments at the bottom of the post!
View the original article here.

Edmunds.com: Overall Car Prices Up $150 in May

05/16/2011

According to Edmunds.com and their preliminary analysis of sales data through the first week of May, the sale pace in the first week of May came in at a SAAR 12.8 million, showing little deterioration from the last week of April.

They also said there is some noticeable movement in retail market share among the automakers: the retail shares for Toyota and Honda are down 28% and 20%, respectively, compared to the first week of April; GM is up 18% and Volkswagen is up 8%. BMW and Mercedes-Benz are up 28% and 10%, though it should be noted that they each had a weak early April.

Edmunds.com said overall prices increased $150 in the first week of May compared to the previous week and $350 since the March earthquake. Japanese cars had a higher increase in prices than any other origin: $250 more than the last week in April.

Edmunds.com’s analysis shows the automotive segments with the largest increases are:

  • Midsize cars – up about $220 or 0.9%
  • Compact cars – up about $160 per vehicle or 0.8%
  • Full size cars – up about $230 or 0.7%

Some popular models showing notable price increases include:

  • Accord: up about $480
  • CRV: up about $300
  • Pilot: up about $330
  • Camry up about $120
  • Corolla: up about $220
  • Prius: up about $50
  • Fusion: up about $150
  • Malibu: up about $50
  • Cruze: up about $120
  • Mazda3: up about $200

When it comes to supply, Edmunds.com said Days to Turn (DTT) – which looks at the number of days between when a car hits the dealer lot and when the car is purchased – is a good measure of supply versus demand. Since the earthquake in March, overall  DTT has decreased from 58 to 50.

Edmunds.com said the DTT by geographic origin before and after the earthquake is more telling: European cars have fallen from 46 to 41 days (mostly luxury vehicles); South Korean cars have fallen from  49 to 44; Domestic: fell from 59 to 49; Japanese cars have fallen the least, from 59 to 55 (Why has the DTT for Japanese cars fallen the least? Edmunds.com CEO Jeremy Anwyl offers his theory on AutoObserver.com: http://www.autoobserver.com/2011/05/belief-and-truth-may-differ.html)

“One big question as we enter the summer selling season is how the collision between car buyers looking for seasonal deals and carmakers raising prices will all play out. This should become clearer over the next few months, but I would expect the market to achieve a better balance of pricing to demand,” said Edmunds.com CEO Jeremy Anwyl.

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