The new car ads may speak of eight-thousand dollar discounts, but you're not really saving money.
A study by IHS Automotive shows Americans are hanging on to their older cars these days. Auto industry consultant David Stivers says cars just cost a lot of money. Those ads screaming about discounts could wind up costing you even more money.
“They're marking things up with ... hot air, basically,” Stivers says, “an inflation of the price to make it appear as if people are getting a substantial discount, when they're really not.”
The average age of cars on U.S. highways these days is 11-point-4 years old -- an all-time high.
For years we were told life would be better in a shiny new car. A lot of people aren’t buying that any more.
“Consumers are realizing they are the same person, regardless of what they drive,” he says. “And, they look at how much it's going to cost.”
At the same time, it’s worth noting sales of new cars are higher in 2014.