The Industry's Leading Source For F&I, Sales And Technology

Top News

Edmunds.com Reports June Incentives Down One Percent from 2007

July 18, 2008

SANTA MONICA, Calif. – Edmunds.com estimated the average automotive manufacturer incentive in the U.S. was $2,356 per vehicle sold in June 2008, up $32, or 1.4 percent, from May 2008, and down $22, or 0.9 percent, from June 2007.

"General Motors and Toyota were the only two companies to have increased incentives this month from last year with Toyota incentives reaching a record high," stated Jesse Toprak, executive director of industry analysis for Edmunds.com. "General Motors last minute 72-hour sales campaign helped increase their incentives spending for the month and Toyota needed some additional dollars to move their large SUVs and trucks from dealer lots."

Combined incentives spending for domestic manufacturers averaged $3,213 per vehicle sold in June 2008, down from $3,349 in May 2008. From May 2008 to June 2008, European automakers increased incentives spending by $299 to $3,048 per vehicle sold; Japanese automakers increased incentives spending by $135 to $1,404 per vehicle sold; and Korean automakers decreased incentives spending by $22 to $1,951 per vehicle sold.

In June 2008, the industry's aggregate incentive spending is estimated to have totaled approximately $2.84 billion, down 12.3 percent from May 2008. Chrysler, Ford and General Motors spent an aggregate of $1.7 billion, or 60.3 percent of the total; Japanese manufacturers spent $712 million, or 25.0 percent; European manufacturers spent $278 million, or 9.8 percent; and Korean manufacturers spent $140 million, or 4.9 percent.

"More of the same this month with continued high levels of incentives being spent on large SUVs and trucks," commented Michelle Krebs, Edmunds' AutoObserver.com senior editor. "We expect Chrysler and Ford will become more aggressive to decrease inventories of their current Dodge Ram and F-150 before they introduce their replacements."

Among vehicle segments, large SUVs had the highest average incentives, $5,097 per vehicle sold, followed by large trucks at $4,329. Sport cars had the lowest average incentives per vehicle sold, $1,128, followed by compact cars at $1,168.

Analysis of incentives expenditures as a percentage of average sticker price for each segment shows large SUVs averaged the highest at 13.5 percent, followed by large trucks at 13.3 percent of sticker price. Sport cars averaged the lowest at 3.9 percent, followed by luxury sport cars at 4.9 percent of sticker price.

Comparing all brands, in June MINI spent the least at $125, followed by Scion at $223 per vehicle sold. At the other end of the spectrum, Saab spent the most at $7,215, followed by Cadillac at $6,612 per vehicle sold. Relative to their vehicle prices, Saab and HUMMER spent the most at 20.6 percent and 15.2 percent of sticker price, respectively; while MINI spent 0.6 percent and Scion spent just 1.3 percent.

Edmunds.com's monthly True Cost of IncentivesSM (TCISM) report takes into account all automakers' various U.S. incentives programs, including subvented interest rates and lease programs, as well as cash rebates to consumers and dealers.

Your Comment

Please note that comments may be moderated. 
Leave this field empty:
Your Name:  
Your Email:  

CLOSE [X]

READ NEXT

Bank of the Ozarks Joins AppOne Platform

AppOne has announced that Bank of the Ozarks, an Arkansas-based lender that offers commercial-equipment financing and leasing through Bank of the Ozarks Leasing, has joined AppOne's lender network.