FI showroom red and grey logo
MenuMENU
SearchSEARCH

Auto Incentives Fall for Fifth Straight Month, Says Edmunds.com

Edmunds.com estimated that the average automotive manufacturer incentive in the U.S. was $2,475 per vehicle sold in August 2009, down $231, or 8.5 percent, from July 2009, and down $327, or 11.7 percent, from August 2008.

by Staff
September 2, 2009
3 min to read


SANTA MONICA, Calif. — Edmunds.com estimated that the average automotive manufacturer incentive in the U.S. was $2,475 per vehicle sold in August 2009, down $231, or 8.5 percent, from July 2009, and down $327, or 11.7 percent, from August 2008.

“In March, the industry spent a record $3,165 per car, but since that time incentives have continuously fallen,” stated Jessica Caldwell, director of industry analysis for Edmunds.com. “Supply is low right now since 'Cash for Clunkers' depleted the small inventories generated during shortened production runs earlier this year, but I expect we’ll be telling a very different story in the months to come.”

Ad Loading...

According to Edmunds.com, combined incentives spending for domestic manufacturers averaged $3,193 per vehicle sold in August 2009, down from $3,617 in July 2009. From July 2009 to August 2009, European automakers increased incentives spending by $289 to $3,751 per vehicle sold; Japanese automakers decreased incentives spending by $11 to $1,571 per vehicle sold; and Korean automakers decreased incentives spending by $523 to $2,504 per vehicle sold.

True Cost of Incentives for the Top Seven Automakers

Automaker

August 2009

July 2009

August 2008

Chrysler Group

$3,018

$4,218

$4,604

Ford

$3,182

$3,311

$3,437

General Motors

$3,343

$3,647

$4,053

Honda

$947

$1,281

$1,426

Hyundai

$2,504

$3,027

$2,044

Nissan

$2,620

$2,608

$2,512

Toyota

$1,543

$1,310

$1,534

Industry Average

$2,475

$2,706

$2,802

In August 2009, the industry’s aggregate incentive spending is estimated to have totaled approximately $2.9 billion, up 7.6 percent from July 2009. Chrysler, Ford and General Motors spent an aggregate of $1.5 billion, or 53.6 percent of the total; Japanese manufacturers spent $778 million, or 26.8 percent; European manufacturers spent $299 million, or a near-record 10.3 percent; and Korean manufacturers spent $270 million, or 9.3 percent.

“Unlike the rest of the industry, the European automakers boosted incentives in August, but their luxury cars and sports cars still didn’t sell well during the Cash for Clunkers period,” noted Edmunds.com Senior Analyst Michelle Krebs in her report on AutoObserver.com. “Meanwhile, compact cars and trucks sold like crazy, and in retrospect it seems that automakers may have spent more than they needed to when incentivizing them.”

Among vehicle segments, premium luxury cars had the highest average incentives, $5,931 per vehicle sold, followed by premium sport cars at $5,791. Subcompact cars had the lowest average incentives per vehicle sold, $1,314, followed by sport cars at $1,862. Analysis of incentives expenditures as a percentage of average sticker price for each segment shows compact trucks averaged the highest, 11.4 percent, followed by large cars at 11.1 percent of sticker price. Sport cars averaged the lowest with 5.9 percent and premium sport cars followed with 6.1 percent of sticker price.

Comparing all brands, in August Scion spent $235 followed by smart at $422 per vehicle sold. At the other end of the spectrum, Cadillac spent the most, $6,121, followed by BMW at $6,010 per vehicle sold. Relative to their vehicle prices, Pontiac and Volvo spent the most, 17.3 percent and 15.9 percent of sticker price, respectively; while Scion spent the least at 1.4 percent and Smart spent 2.9 percent.

More F&I

Man holding magnifying glass over sales volume paper.
F&IMay 29, 2026

Why Your F&I PVR Is Misleading You

Here’s a handy checklist of the numbers to track in 2026 instead.

Read More →
Photo of woman typing on a laptop as she sits on a couch
F&Iby Hannah MitchellMay 29, 2026

Auto Consumer Anxiety Presents Opportunity

A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.

Read More →
Dustin Gingerich standing on stage giving a presentation
F&Iby Lauren LawrenceMay 28, 2026

Humble and Hungry: 12 Rules for an F&I Life

Dustin Gingerich, with a decade in the F&I business under his belt, shares his thoughts on leadership, building trust with customers, and the importance of learning and innovation.

Read More →
Ad Loading...
Photo of businessman's hands resting on files on a desk
F&Iby John TabarMay 27, 2026

Focus on the Opening

F&I managers must learn as much as possible about their customers, starting before they walk into their offices. The bulk of today’s consumers expect that, and good results will follow.

Read More →
Photo of a three-seat vehicle back seat
F&Iby Hannah MitchellMay 22, 2026

F&I Reaches for the Sky

The increasingly important profit center continued making gains in the first quarter, according to StoneEagle data, ancillary products proving more popular as consumers hold onto their buys longer.

Read More →
Cover image for a BOK Financial report titled “Timing the market: How avoiding volatility entirely can hurt long-term reinsurance program performance.” The image shows several road construction barricades with flashing amber warning lights lined up in a nighttime work zone. Beneath the image, red text explains that avoiding volatility can mean falling behind inflation and missing market rebounds that drive long-term surplus growth. The BOK Financial logo appears at the bottom right.
SponsoredMay 8, 2026

Timing the Market Can Hurt Long-Term Program Performance

For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.

Read More →
Ad Loading...
Ryan Ruff, The 90/10 Rule, Automotive Training Academy, Sales Series
F&IMay 6, 2026

The 90/10 Rule

In this video, Ryan Ruff explains the rule that elite sales professionals use to turn ordinary conversations into unforgettable customer experiences.

Read More →
Photo of essential oil diffuser on desk next to laptop
F&IMay 4, 2026

Your Office Is Talking

What’s the atmosphere saying about you to your customers? You can make minor adjustments and additions that transform your space into one that creates trust with the people on the other side of the desk.

Read More →
"Effective training ensures the customer’s needs remain at the heart of everything we do. When that is the focus, both sales and profits naturally improve." by Rick McCormick with F&I and Showroom logo and picture of Rick McCormick
F&IMay 1, 2026

F&I Training Fundamentals

How can auto dealerships help F&I managers fulfill their vital role in the most effective ways? Industry expert Rick McCormick shares his insights on the best ways to train these professionals and help them maintain good habits.

Read More →
Ad Loading...
Photo of car tire and the tread mark it left in snow
F&Iby Hannah MitchellApril 29, 2026

Not Just Any Tire Will Do

More consumers and businesses are opting for all-season options for various reasons as safety, sustainability and convenience push practical change.

Read More →