Kyle’s Corner (FYI) Lower Vehicle Prices but How Much Extra is the Horn?

Remember the old saying, "There is more than one way to skin a cat." Thus, there is more than one way to get the job done! Today's automakers want to get the job (vehicle sales) done. Therefore, more and more of them are lowering the price of their base models by 'skinning the car.' Consumers are not experiencing as much sticker shock as in the past, but what about - option shock?

Prices of some vehicles are down because they have fewer features. Automakers have found a sneaky way to get consumers into showrooms - lower car prices by cutting the goodies but get the dough from optional features.

And how does it work in the real automotive world? Nissan lowered the price of the 2012 Murano Cross Cabriolet convertible by $1,850 to $44,540 (I thought about doing an article on this vehicles, but man is it expensive!). However, the automaker dropped the standard navigation system and made it (you guessed it) an $1,850 option.

Other automakers have also cut standard equipment. For example:

Volkswagen dropped the price of the 2011 Jetta by about $1,300 or 13.4 percent. However, buyers are adding optional features that generally end up reducing the cars price by about 8.8 percent.

Chrysler wanted to sell the least expensive crossover SUV equipped with a third row seat. Therefore, the automaker created the new 2012 Dodge Journey with less equipment and a $3,250 lower starting price ($19,990). The model has a four-cylinder engine and an extra charge of $750 for shipping. The Journey still has air conditioning and a multimedia display.

Chrysler cut $1,000 off the redesigned 2011 Dodge Grand Caravan and then $3,000 more off the 2012 model. The starting price is now down to $20,995 plus shipping (isn't shipping something the dealer incurs before a customer buys a vehicle?). The roof rack and trim items such as body colored door handles were eliminated. However, many of the most desired features are reported to remain on the vehicle.

Chevrolet's 2012 extended range electric car, the Volt, received a price cut of $1,005 and now has a starting price of $39,995 (was GM serious about selling this car at such a price in the first place?). How did Chevrolet do it? The car's navigation system is now an option.

As the automotive industry is highly competitive, consumers are getting better quality vehicles and somewhat more value for their money. However, a final buyer new car warning - do not pay too much extra for the horn or a surcharge to walk the dealer's lot!

Kyle Busch is the author of "Drive the Best for the Price: How to Buy a Used Automobile, Sport-Utility Vehicle, or Minivan and Save Money." He welcomes your comments or car questions at his auto web site: www.cartown1.com. Follow Kyle on Facebook and Twitter.