FOR IMMEDIATE RELEASE
Bargain Hunters Find Closeout Vehicles at Significant Discounts, According to Edmunds.com
Santa Monica, CA - October 29, 2003 - Buyers of new 2003 model year vehicles paid an average 18.3% below sticker price in September, a record low for the model year, according to Edmunds.com, the premier online resource for automotive information. Average net price, which is the transaction price adjusted to reflect incentives, was $23,704 for 2003 model year vehicles, as compared to an average sticker price of $29,000. In the same month, 2004 model year vehicles were sold for an average net price of $26,461 - 11% below their average sticker price of $29,733.
"Our research shows that 69% of new vehicle buyers selected 2003 model year vehicles in September the traditional turn of the model year taking advantage of low prices and the vast selection still available," stated Dr. Jane Liu, Executive Director of Data Analysis for Edmunds.com. "The savings are substantial at the time of purchase, but consumers should consider that the closeout bargains will produce lower residual values than their newer model year counterparts."
Edmunds.com also reports that in September 7.5% of 2003 models sold for an average of $9,000 or more below sticker price, and 41.6% sold for at an average of $5,000 or more below sticker price. Models with the biggest discounts included Cadillac Deville which sold at an average of $13,048 below its suggested retail price, Lincoln Navigator at $12,999 below and Jaguar XJ-Series at $10,129 below.
However, Edmunds.com found the success of the 2004 model year vehicles pulled the overall industry average net price up to $24,554, up $388 or 1.6% as compared to August.
From August to September, the Edmunds.com New Vehicle Price Index rose 0.85% to 98.2% (base = 100 set in January 2002), mainly as a result of the market share increase of 2004 model year vehicles. The van segment experienced the highest monthly increase, 2.2%, while sports cars had the biggest decline, 1.3%.
The Edmunds Price Index for new vehicles (EPI-N), which reflects price shifts for the industry as a whole, and can be analyzed by different market segmentation. Similar to the Consumer Price Index, the EPI-N measures the average changes in retail prices for a fixed basket of new vehicles with fixed options over time for the purpose of trend analysis. Edmunds.com also analyzes transaction prices and net prices by country of origin, manufacturer, make and model, reflecting manufacturer-to-consumer rebates, including low APR and special lease programs.
About Edmunds.com, Inc.
Edmunds.com is the premier online resource for automotive information. Its comprehensive set of data, tools and services, including Edmunds.com True Market Value® pricing, is generated by Edmunds Data Services and is licensed to third parties. For example, the company supplies over 800,000 pages of content for AOL's auto channel and NYTimes.com's auto section and delivers monthly data reports to Wall Street analysts. Edmunds.com was named "best car research" site by Forbes ASAP, has been selected by consumers as the "most useful Web site" according to the J.D. Power and Associates New Autoshopper.com StudiesSM since 2001, and was ranked first in the Survey of Car-Shopping Web Sites as reported by The Wall Street Journal. The company is headquartered in Santa Monica, California and maintains a satellite office in Troy, Michigan.