Auto prices edge higher

DETROIT, May 21 (UPI) -- Higher sticker prices and lower incentives offered by car companies are pushing the cost of a new car higher in the United States, industry analysts said.

Higher prices do not tell the entire story when it comes to the cost of a car, as there are a raft of features and discount programs that make a difference, The New York Times reported Saturday.

In April, the average transaction cost for each car sold rose by $324 to $29,602, TrueCar.com reported.

The dynamics behind the pricing includes automakers raising prices to cover the cost of production. General Motors said this year it would raise prices by an average of $123 per vehicle, while Ford Motor Co. raised prices by an average of $117.

Automakers are offering fewer incentives to attract attention, as expanded lineups are already bringing shoppers into showrooms, the Times said. Many of those driving away with smaller cars are loading these up with features, which raises the average transaction cost.

Small cars are also in short supply after the March 11 earthquake in Japan disrupted supplies of auto parts. High demand and limited supplies are pushing prices higher.

"Our incentive strategy is based on the competitive environment. There's been a drastic change because stocks have been depleted and we're launching a lot of new products that don't require incentives to sell," said Ford's head of global sales, Jim Farley.