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New car prices level off after several years of increases

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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 this year-to-date is $28,013, down slightly from the $28,337 logged for all of last year.

But from 2008 through last year the average transaction price rose 11%.

Renewed consumer demand from drivers of aging cars and a significant reduction in the sales incentives offered by manufacturers were behind that price increase.

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Prices have leveled this year because automakers have been disciplined about their discounts and sales incentives.

In 2008, the average incentive per car sold was $3,018. By last year, that had dropped to $2,686.

J.D. Power, which used data from 9,500 dealers for its report, noted that automakers are selling cars with more options and equipment, a trend that also has contributed to higher transaction prices.

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