American cars are improved, but with a price

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Buyers of American cars are getting more bang for their buck - but they're also forking over a lot more of those greenbacks.

CNN reports shoppers no longer should expect rebates and discounts on models from Ford ( F ), General Motors ( GM ) and Chrysler. But carmakers also are offering smaller cars that are more fuel efficient, according an analyst at automotive website Edmunds.com.

"The domestics are better able to optimize both their pricing strategies and their incentives strategy," Jesse Toprak, an analyst with automotive website Truecar.com, told CNN.


Domestic cars are being sold at prices that more closely approach the full price listed on stickers as compared to 2006.

Inventories of models from the Detroit Three also are tightening, according to the Detroit Free Press . The available numbers of Ford Focus and Fiesta, Chevrolet Cruze and Dodge Caliber are at low levels.

Some dealers of foreign models also are in need of re-supply, such as the owner of a Toyota ( TM ) dealership in the Detroit suburbs.

"There is no question that the pipeline is going to definitely get a bit thin," Bob Page of Page Toyota in Southfield told the newspaper.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: News Headlines , Business

Referenced Stocks: F , GM , TM

Henry Brier


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