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Well back to the business of -- -- hour -- look at the industry June sales up big but kept the momentum keep up with this -- will the threat of rising interest rates and falling incentives this month.
Drive people to the dealerships -- away.
Alec Gutierrez new Kelley blue book numbers show the average sale price rose nearly 1% in June vs last year.
Would it put a damper on sales going into July or do you expect this.
I know we we expect to see a new vehicle transaction prices continue to rise it's a trend that's really been occurring over the last several years.
As consumers are opting for better equipped vehicles.
And we also see the cost of entry entry says manufacturers opt to increase fuel efficiency by adding.
New technologies such as direct injection.
Turbocharged engines so this is a trend and it's it's likely going to continue I luckily for consumers -- interest rates.
Are as low as they've ever been 0% financing for up to sixty -- as widely available they're great lease rates out there in India -- 99 a month.
I -- a number of the electric vehicles out there would start in the 30000 dollar range.
Alonso while prices are gonna continue to rise the low cost of money's gonna help to keep that affordable at least in the short term certainly -- the second half a 2013 now and -- point fourteen if it's anybody's guess certainly.
And -- you're also talking about that seeing the availability of credit the cheap rates but.
We know in a bigger picture interest rates are creeping up ever so slightly so what is your outlook in terms of auto loan rates.
In terms of I am not looking at loan rates are looking at the cars and the -- person.
But Selanne and I don't care and is it that car in that the product or is that they financing available what's the driver -- the motivated for the buyer or at least it's in the fact that the cars are sold or old people have not been in the market a long time when they get in the market.
There are finding cars that are unbelievably.
An unbelievably fabulous if as prices go up a little bit what we're also seeing our people are coming down from bigger cars getting smaller cars that are more.
Morphed more luxurious.
More loaded with equipment.
People are finding a technology that was only found on luxury cars before are now in small cars.
If you don't really need a new -- -- -- last long time you have to want one in the cars that are coming on stream now beyond the trucks.
Desirable they're beautiful and their load.
-- let me bring Michelle back into this from a Edmunds dot com there was concern that the manufacturers were offering perhaps too much in the form of incentives I mean that's how they got into trouble.
Back in 20062007.
But -- those days supplies like sixty day supply now is much less.
That it was going into the financial collapse are we over incentivizing again and setting up problems in the future for GM and Ford and Chrysler.
Absolutely not what we have seen from the auto makers is.
Extreme discipline in terms of keeping incentives low.
And I'm making sure that their production isn't they are over producing.
Beyond what the demand as -- -- amazingly.
And -- -- I would add on to what -- said -- the other thing is you bring an end you're used tire.
You're gonna get a nice top price for that on a trade and so that's gonna help you live.
Buying -- power.
George it seems recently though there have been a lot of government recalls -- requests.
For -- -- various models across the board DC that is a risk or what might be some other risk factors for the strengthening auto industry.
Oh absolutely not ever since the Toyota recall all the manufacturers are very attuned to this any time something happens.
Price who was a little -- this Olympics of dug their heels -- but every to have this happens the cars have to -- called Randy.
-- -- successful in digging their heels and saying look we're not recalling these these Jeep cherokees rate even of the government's.
Asking them -- well they they often did they offer the government a fix and -- and an individual to take back most of the electrical most of the vehicles so we have to cut a deal.
And this was cost effective for them.
-- curiously when we get into this discussion of recalls and issues that might keep buyers out of the market.
The incentives if -- not as many incentives now isn't there a danger that buyers will wait.
For the sale that they -- to be expecting.
And yet you know it.
Think consumers as we know consumers spend anywhere from 68 months in the shopping process there's a lot of research there -- -- it's it's the biggest investment that they're gonna make aside from purchasing a new home.
So I think consumers are sensitive to trying to get the best deal possible.
How you know like we don't Tennessee yes yes real quick if I don't buy this month -- mind missing the best time to buy is in July it and then I got -- game.
Definitely not entirely -- right now -- last -- You thought I -- -- something in the sister of it did exactly I think if if you wanna get the best possible deal and you don't necessarily.
Com wanna have ultimate selection available you're gonna find the best deals in in the month of November or December is a really trying to clear out the last previous model your inventory so bright colors also reveals the bottom line -- that is the deals are still going to be out there you don't feel pressure right now to have survived but it's a good time thanks everybody stick around as we have much more.
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