It was a strong June for the auto industry, which saw the average transaction price of a new car increase from May and the same month last year. According to data from Kelley Blue Book, the average cost of a new car in June was about $31,663, up from $31,293 in May and $31,394 in June of 2012.
"Consumer confidence continues to be a strong factor, along with pent-up demand and for now, low interest rates, bringing shoppers into the showroom to purchase a new vehicle," said Alec Gutierrez, an analyst at Kelley Blue Book. "Ford has been one of the biggest beneficiaries, with transaction prices up nearly 3 percent, due to the strength in large truck sales, coupled with newly redesigned vehicles in the Fusion and Explorer."
While the rising sticker prices of new cars is good for the industry, it's not as great for drivers on a tight budget. Those motorists may have to look to auto repair or vehicle maintenance to extend the life of their existing ride until they can find deals and incentives that fit their budget. Drivers can also look to certain automakers whose prices have not increased as dramatically, as manufacturers like GM and Nissan actually had costs drop in June and could be a source of value in the future.