Green Boy Press-Gozette Sunday, March 5. 1989 Automotion-5 1989 car prices up less than in recent years interest financing and discounts on options are taking some of the sting out of higher prices. But analysts say those incentives are unlikely to become as eyecatching as the 1.9 percent financing that was available on virtually every model a couple of years ago. four-door Ford Tempo GL has a base price of $9,207 vs. $11,849 for a comparable four-door Nissan Stanza he says.
And those higher prices have hurt import sales. Of" 25 foreign car makes, 21 saw their sales slip in 1988 from 1987. Sales incentives rebates, low- Up and away How the average price of a new car has risen and the percentage change from the previous year: Year Price Change carmakers could be forced to raise prices because of rising costs for components. O'Grady says they also may take advantage of importers' price increases to raise their own prices and increase profits. Already this month, Nissan has raised prices on its line by an average of 3 percent, or $388; Ford's South Korean-built Festiva went up $263 to and Chrysler tacked $600 onto its Canadian-built Eagle Premier to cover higher costs of imported components.
Prices of many imported models have risen sharply in the past three years because of the dollar's 50 percent fall in value relative to foreign currencies. Because of the dollar's slide, auto consultant Michael Luckey says, prices of Japanese and West German imported vehicles have risen an average of 30 percent in the past three years, vs. 12 percent for domestic makes. A QUCSTOR the PICK YOUR PAYMENT LEVEL: 1980 1981 1982 1983 1984 1985 1986 1987 1988(1) $7,547 8,910 9,890 10,640 11,450 12,022 12,893 13.603 14,920 10.6 17.6 11.0 7.6 7.6 5.0" 7.2 5.5 9.7 (1 As of November 30 Source: Department of Commerce Press-Gazette chart by Bob Yancey and domestic models before the 1990 model year kicks off Oct. 1.
Import prices could rise if the dollar resumes its slide against foreign currencies. And domestic affordable passenger radial with no compromise" performance Performance excellence at an affordable price. Computer designed for optimum wear and handling. Two full-width steel belts for But good news may not last By Doug Carroll Gannett News Service Price increases on 1989 cars were smaller than in recent years. But the good news may not last.
The Big Three automakers generally raised 1989 prices less than 3 percent over their 1988 models. Some foreign carmakers have shown even more restraint: Volvo carried 1988 prices over to its 1989 models. And Mercedes cut the base price on one of its least expensive models, the six-cylinder 190E with 2.6-liter engine. It dropped $1,910, to $31,590. But today's prices may not last through the model year.
Thomas O'Grady, auto consultant at Integrated Automotive Resources, expects prices to rise about 3 percent on both imports Luxury cars carving niche in U.S. market Gannett News Service Robert Byrnes Jr. ust wasn't satisfied with his Chevrolet Cavalier any more. So he bought a Cadillac Eldorado. "Nobody really needs a $30,000 car, but there's something about that Cadillac name," says Byrnes, 39, controller at an Omaha engineering firm.
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Andy Kaezmarek, Glenn Scharping, Jim Daus, Warren Young, Robert Trinka, Tom Sweemer. BROADWAY CHEVROLET OLDSMOBILE VW SAAB called the baby boom the oldest turn 43 this year is closing in on middle age, and that's prime time for luxury car sales. By the early "Nobody really needs a $30,000 car, but there's something about that Cadillac name." Robert Byrnes new car buyer 1990s, auto executives say, they could sell as many as 1.4 million luxury cars a year up 50 percent from 1988 even though total sales are expected to slide. There's going to be an incredible fight for those new buyers. The market isn't large about 8 percent of car sales but it's very lucrative.
The dealer's profit margin is $5,000 to $10,000 on many luxury models; the automaker's cut is at least as big. To win some of that business, you'll see Japanese automakers risking billions on new cars equipped with everything but chauffeurs. You'll see other automakers dumping millions into making over current models to look like whatever buyers seem to want. Honda has shown there's room for newcomers. Its 3-year-old Acura Legend is No.
3 in sales among luxury cars costing $35,000 or less. This fall, Japan's Nissan and Toyota plan to try to crack the luxury -car market. Their new luxury brands Infiniti and Lexus, respectively not only will sell cars in Acura's $25,000 range, they'll leap into battle against prestigious European makes selling for more than $35,000. "It's incredible what the Japanese are hitting us with," says auto consultant Jim Wangers. "If the big guys Mercedes-Benz, BMW, Jaguar aren't worried, they ought to be." Toyota and Nissan are expected to spend $175 million on ads this year.
Much of that will be aimed at keeping buyers out of competitors' showrooms until fall, when Toyota's Lexus and Nissan's Infiniti go on sale. Later ads will point out that luxury buyers can have European-style sophistication and features plus Japanese reliability, for prices that begin around $25,000. Acura won't be standing still. It plans a V-8 sedan early in 1990, bigger and more expensive than the Legend that now tops the Acura line. And look for a mid-engine, two-seat $60,000 sports car in 1990.
"Remember how the Japanese saturated the low end of the market in the '70s? Well, they're about to do the same at the high end," says auto analyst Maryann Keller at Furman Selz Mager Dietz Birney. Be sure you can see, and be seen Whether it's around the block or across the country, you increase the chances of an accident if you take to the road before you can see and be seen. The Motor Vehicle Manufacturers Association offers these tips: Make sure all lights work. Don't forget the emergency flashers. Check windshield wiper blades; they wear out even when they are not being used.
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