The price a consumer will pay for a new General Motors vehicle is going up, according to a report from Motor Trend magazine. The publication says that the company's average transaction price, or ATP, has been increasing as it heads toward its first initial public offering since accepting heavy government subsidies as part of an industry bailout package.
Motor Trend says that, when an auto company's ATP is high, it means consumers have been buying their vehicles with more options and accessories. This, the magazine says, makes the company's cars more valuable, and can make leased vehicles particularly strong sources of income.
The magazine also says that one of GM's main domestic rivals, Ford, has been touting its ATP numbers for some time now. That company's Fusion model is frequently purchased with numerous "comfort" options, according to Motor Trend, and the high gas mileage enjoyed by the mid-size vehicle has improved the company's corporate average fuel economy numbers.
However, Motor Trend says, there are two sides to the use of ATP statistics as a measure of a car company's health. One possible drawback to publicizing that information too much could be a consumer backlash against high prices. As the magazine says, "higher ATPs are good for automakers' profits, especially when they're eager to release themselves from government ownership. They're not so good when you set foot in your local dealership."
Purchase prices are not the only financial concerns that prospective vehicle owners face. Car insurance costs can also be significant, and are subject to a number of factors that consumers should familiarize themselves with before making a purchase.