Edmunds.com Reports True Cost of Incentives for August
Edmunds.com estimated that the average automotive manufacturer incentive in the U.S. was $2,362 per vehicle sold in August 2007, down $159, or 6.3 percent, from July 2007, and up $51, or 2.2 percent, from August 2006.
SANTA MONICA, Calif. — Edmunds.com estimated that the average automotive manufacturer incentive in the U.S. was $2,362 per vehicle sold in August 2007, down $159, or 6.3 percent, from July 2007, and up $51, or 2.2 percent, from August 2006.
Edmunds.com's monthly True Cost of Incentives (TCI) 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. To ensure the greatest possible accuracy, Edmunds.com bases its calculations on sales volume, including the mix of vehicle makes and models for each month, as well as on the proportion of vehicles for which each type of incentive was used.
According to Edmunds.com, combined incentives spending for domestic manufacturers averaged $3,293 per vehicle sold in August 2007, down from $3,393 in July 2007. From July to August, European automakers decreased incentives spending by $307 to $2,976 per vehicle sold; Japanese automakers decreased incentives spending by $239 to $1,196 per vehicle sold; and Korean automakers increased incentives spending by $153 to $1,910 per vehicle sold.
In August, the industry's aggregate incentive spending is estimated to have totaled approximately $3.34 billion, essentially unchanged from July. Chrysler, Ford and General Motors spent an aggregate of $2.25 billion, or 67.2 percent of the total; Japanese manufacturers spent $668 million, or 19.9 percent; European manufacturers spent $291 million, or 8.7 percent; and Korean manufacturers spent $139 million, or 4.2 percent.
Among vehicle segments, large trucks had the highest average incentives, $4,349 per vehicle sold, followed by large SUVs at $3,947. Compact cars had the lowest average incentives per vehicle sold, $873, followed by sport cars at $1,037. Analysis of incentives expenditures as a percentage of average sticker price for each segment shows large trucks averaged the highest, 13.7 percent, followed by large cars at 11.9 percent of sticker price. Luxury sports cars averaged the lowest, 3.4 percent, followed by sports cars at 3.6 percent of sticker price.
Comparing all brands, in August Mini spent the least — virtually nothing, followed by Scion at $86 per vehicle sold. At the other end of the spectrum, Saab spent the most, $6,732, followed by Cadillac at $6,177 per vehicle sold. Relative to their vehicle prices, Saab and Jeep spent the most, 20.1 percent and 14.6 percent of sticker price, respectively, while Mini spent virtually nothing and Scion spent just 0.5 percent.
More F&I

Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →
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 →
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 →
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 →
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 →
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 →
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 →
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 →
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 →
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 →