Auto transaction prices creep up in November

Although there's been a slew of positive news regarding the recovering U.S. auto industry of late, transaction prices rose in November. While consumer spending is on the rise, sustained employment trends are needed to maintain and eventually boost job creation. "Transaction prices have been creeping back up after a slight decline in August with average new vehicle prices over $30K," said Jesse Toprak, vice president of Industry Trends and Insights at TrueCar.com. "We are going to see automakers really push incentives in December to finish the year off strong." The average transaction price for light vehicles in the U.S. was $30,317 in November, up $164 - 0.5 percent - from the previous month and $1,163 - 4 percent - from November 2010. The U.S. Department of Labor reported on Friday that employers added a net 120,000 new jobs in November, which helped to draw down the unemployment rate from 9 percent to 8.6 percent. Analysts hope continued improvements in the labor market will drive consumers back to the market and spur retail sales, including auto purchases. Earlier this week, Experian reported a significant jump in subprime auto lending, meaning institutions may be loosening their credit decisions.