Affordable financing makes buyers reach out to expensive cars image

Besides taking the year’s level above 2013, US consumers are also confident enough to go for higher priced vehicles and longer loans.

Enticed by ubiquitous six-year loans, small interest rates and affordable leases many buyers overlook the car’s final price, reaching towards better equipped and higher priced vehicles even if the final figure rises by thousands of dollars.

We all know the automakers in the US have been positively surprised by the sales trend this year. But besides the higher numbers than last year’s deliveries is the fact that transaction prices are also setting all-time records in 2014. One industry observer even went on to calculate the seasonally adjusted rate to take into account the higher prices – with August’s figures showing a pace that would translate at the year’s end to sales of 20 million units.

“When I’ve talked to the automakers, they’re all telling me they’re getting a pretty rich mix,” said Larry Dominique, executive vice president for industry solutions at TrueCar. “Consumers are just willing to pay more.”

“They want to buy a more expensive car because they like all the content now,” said Edmunds chief economist Lacey Plache. “They’re more willing to add this or that. They’re looking to get the best bang for their buck.”

According to TrueCar, last month’s transaction prices climbed 2% year-over-year, reaching an average of $31,341. The trend is likely to continue into September, traditionally a stronger month.

Via Automotive News