New-Car Prices at Record Highs

New-car prices are at their highest levels ever recorded, according to Truecar.com, a research and forecasting firm.

In May, the average transaction price for a new car stood at $29,817, which is a $608 increase from a year ago and $215 more than April prices.

Some automakers have seen bigger price increases than others. The average transaction price for a new Ford is $32,885; that’s a 5.2% increase from the same month last year.

The higher prices reflect a tightening supply for new cars, which explains May’s slight sales drop month-over-month. Automakers are offering fewer discounts since there are fewer cars to sell mainly as a result of the March earthquake and tsunami in Japan. The average incentive has decreased by $822 from a year ago and is now averaging $2,017, according to Truecar.com.

Hyundai and Kia continue to have the lowest transaction prices out of the top seven automakers with a current going rate of $19,217.

New-Car Prices Hit Record Highs In May (The Wall Street Journal)

Toyota Launches New Incentives to Fight Slow Sales

Toyota said today that it will initiate new incentives for key products for June. The news comes after a poor sales showing in May.

Incentives will be offered on many of Toyota’s best-selling vehicles, such as the Toyota Camry, and others, like the Tundra pickup.

The Camry is being offered with 0% financing for 60 months nationwide and lease rates below $200, said Bob Carter, group vice president and general manager of the Toyota division.  That nationwide incentive is significant because Toyota typically offers only region-specific deals.

Incentives Diet: Buy This, Not That

New-car incentives are hard to come by these days. Gone are the big lumps of cash back teamed to low financing offers. Even low financing deals are harder to come by as new models and fuel-efficient cars are in high demand.

Are there deals to be had out there? Yes, but it takes more digging and creative thinking.

We’ve taken three pairs of cars that highlight this issue. One is a relative bargain with its pure sticker price versus the other while still packing similar features. All are Cars.com Best Bets except the 2012 Ford Focus, which is too new to be considered for the nod.

All the trim levels we picked for these comparisons needed to include an automatic transmission; air conditioning; power locks, windows and side mirrors; keyless entry; cruise control; Bluetooth connectivity; a USB port; and electronic stability control. MSRP prices include destination charges.

Do the bargain choices always win out? Or do high-demand models cost more no matter the sticker price?

2011 Kia Forte EX vs. 2012 Ford Focus SE Sedan
The Forte debuted a few years ago and was a very well-rounded contender in the compact class. You get a lot for your money, and it was named a Top Safety Pick by the Insurance Institute for Highway Safety. The Focus is all new — joining tougher competition like the Chevy Cruze and Hyundai Elantra — and rides and handles better than the Forte, but it’s also more expensive similarly equipped.

The Focus is in hot demand. In April, it was the second-fastest-selling car on our Movers & Losers list, taking just seven days to sell after hitting a dealer lot. The Forte sold at a respectable 39-day rate, well below the average of 48 days. Still, that worn luster gives the Forte the edge in terms of financing that will save buyers an additional $1,262.44 in addition to the lower sticker price. The Focus hatchback is pictured above, not the sedan. All pricing and equipment mentioned is for the Focus SE sedan.

Nissan Offers Employee Pricing to Storm Victims

Nissan announced it is offering employee pricing discounts and delayed car payments to victims of the recent tornado and flooding in the Southeast.

Consumers who live in Alabama, Tennessee, Georgia, Mississippi, Arkansas and Kentucky and who can show proof of vehicle damage or loss caused by the storms will be eligible for employee discounts. The discounts offer up to $1,500 off the dealer invoice price on top of any applicable regional or national incentives. For instance, you could get a total of $3,628 off a popularly equipped Nissan Altima (MSRP $22,070), costing you only $18,442 total. You can check all the employee pricing deals here.

Nissan is also offering delayed car payments for eligible individuals who’ve financed through Nissan Motors. The program will allow affected customers to delay up to three monthly payments, without extension fees.

Nissan headquarters and most of its U.S. manufacturing is in the Southeast. In addition to the above aid and incentives, the company has pledged $115,000 to the American Red Cross to assist in sheltering and aiding victims of the storms.

Chrysler 200, Dodge Avenger Get More Cash Back

Even though Chrysler’s redesigned midsize sedans are selling well without large incentives, the automaker has boosted cash-back offerings for both models in May. The 2011 Chrysler 200 now has $1,250 cash on the hood, while the refreshed 2011 Dodge Avenger gets $1,750 cash back. The Avenger also has a 60-month zero-percent financing option, though it can’t be combined with the cash back.

In April, the company sold 15,851 units of 200 and Avenger sedans combined. That’s 36.5% more than in April 2010. The 200 has been backed by a vigorous “Imported from Detroit” ad campaign.

The 2011 Chrysler 200 maintains its special lease rates from April: a $199-a-month rate for the Touring trim for 39 months and $1,999 cash down. The 200 convertible has a $299-a-month lease for the same amount of time and $2,999 cash down.

There also are special lease rates on the Chrysler Town & Country and 300 as well as special lease rates on many Dodge vehicles for the month.

Chrysler is continuing its Minivan Month, which is a 60-day money-back guarantee program. Along with the guarantee, some Dodge Grand Caravan models can get up to $2,000 cash back or zero-percent financing for 60 months.

Incentives at Lowest Level in 5 Years

U.S. automakers spent less money on cash-back and financial incentives in April, according to Bloomberg. The average incentive on a new car was $2,320 in April, down about 14% from a year ago. It was the lowest level spent since October 2005.

For car shoppers, that’s not good news. The reduction in incentives was mostly the result of tight inventories, partly because of the earthquake and tsunami in Japan in March. Honda and Toyota have warned their dealers that inventory for vehicles would be tight throughout most of 2011, and Nissan recently postponed its big annual spring sales event.

Nissan Postpones Big Spring Sales Event

Nissan has decided to postpone its big annual sales event, known as the National Tent Sale, due to circumstances pertaining to the earthquake and tsunami in Japan, according to Automotive News.

Although Nissan says it has ample inventories right now, the timing is wrong for a major national sales event, Al Castignetti, Nissan’s vice president of sales and marketing, told Automotive News. Nissan had 152,800 vehicles in its inventory as of April 7; the automaker says that number has grown by another 32,000 vehicles.

It’s important to note that there are still local incentives on Nissan vehicles in most areas, but they vary and are mostly limited to slow sellers. Nissan is launching a number of new vehicles, including the Juke and Murano CrossCabriolet.

Nissan hasn’t decided whether it will postpone the sales event until later this summer. It is usually held in May.

Nissan Suspends May Tent Sale (Automotive News)

Ford Focuses Incentives on Big Sellers: Escape and Fusion

This month, Ford focuses large cash-back offers and low financing on its popular Fusion and Escape models. The Fusion has $1,500 cash back, with the Escape getting $2,000; each model offers 1.9% financing for 60 months. The Taurus, Flex and Super Duty pickup trucks have at least $2,000 cash on the hood. Newer models, such as the Fiesta, Explorer and Focus, have $500 cash-back offers.

Some models, such as the Fusion and Escape, also get extra bonus cash when financing with Ford Credit. On some models, the retail bonus cash can be combined with the Ford financing deal; for instance, you can get a total of $2,500 of cash incentives on the Escape. It’s important to note if you take the retail and Ford Credit bonus cash together, you can’t get the special financing rates on top of that.

While Ford is offering some leasing deals on newer models — like on the 2012 Focus and 2011 Explorer — the deals aren’t particularly impressive compared with offers from Honda, Chevrolet, Chrysler and Dodge. In some regions, Ford will reduce the due-at-signing cash on some leases when switching to Ford from a competitor.

Continue reading below for more details. Most deals expire May 2.

Few Big Incentives from Chevy in April

This month, Chevrolet continues to offer a few healthy cash-back offers, but some 0% financing on some of the brand’s large SUVs has been taken away.

Chevy’s slow sellers, such as the Avalanche and HHR, continue to offer 0% financing throughout April. The Tahoe and Suburban switch from 0% financing to a still-attractive 2.9% for 60 months, though both models maintain a $2,000 cash-back deal from last month. No Chevy models increase their cash-back offerings.

Chevy’s popular sellers, like the Cruze and Equinox, don’t offer much in terms of incentives, but both models have somewhat attractive lease deals.

Most incentives expire May 2. Continue reading below for more detailed offerings:

Chrysler Incentives Focus on Minivans

Chrysler has shifted around some of its incentives for the month of April, deemphasizing trucks but placing more cash on the hood of more models from Chrysler and Dodge.

Chrysler has decided to bring back its 60-day guarantee program for the 2011 Dodge Grand Caravan and 2011 Chrysler Town & Country for April. The “Minivan Pledge” works the same way it has in the past — you can return your van back to the automaker within 60-days, no questions asked. While the program may alleviate some buyer’s remorse — few people ended up changing their minds during past promotions — the pledge doesn’t really offer much in terms of cash back or financing incentives compared with March. 2.9% financing for 60 months is the same as last month. Last month Chrysler offered $2,000 — $4,000 in lease bonus cash on its minivan pair, which helps to reduce the capitalized cost of the lease. Those lease deals might turn out to be a better compared with current lease offerings, depending on your credit worthiness.

The new 2011 Chrysler 200 Convertible gets its first suit of incentives, just in time for the winter’s thaw. Chrysler is offering $1,500 cash back or $750 back and 2.9% financing for 60 months with Ally Financial on the drop top. The all-new 2011 Dodge Durango now has some retail customer cash on the hood: $1,000 on the base Express trim.

Continue reading below for all the highlighted deals available for April. Most deals expire on May 2nd.