The auto industry this year: Expect higher prices on cars

As consumers are finalizing their budget for the rest of the year, economists and financial advisers warn that they may have to cut back their spending on some items or they may need to defer some of their major purchases for the year.

Image source: popularmechanics.com

Buying a car this year, for instance, may be a bad idea, and consumers looking into getting one of the newer models may want to wait for a better opportunity. Car prices are expected to rise every year but for 2013, some manufacturers have expressed intent to raise prices by $1,000 or more on the latest car models.

Image source: nissan.ie

Meanwhile, not all car types are going up in price. Electric cars may be entering into the practical price range this year. The older models of the Nissan Leaf were reported to be getting price drops. The 2013 model, likewise, is getting a drop in retail price by about $6,000. Still, these electric cars have been considered as an overpriced and impractical flop, and the significant price drops may not be enough for many consumers to give them a second look.

In any case, while consumers can expect higher prices on the latest models, they can also expect to find more features on the new cars than on previous models. For some, this may be an acceptable tradeoff.

Image source: yesexactly.net

While waiting for a better opportunity to purchase a newer car model, A&M Automotive in Bellevue, WA recommends keeping an older car properly maintained for longer usability and better fuel efficiency.

AMAutoFactoria.com provides more ideas on the costs and perks of regular car maintenance.