Incentives on the Rise Through Year-End, Says Edmunds.com
Edmunds.com estimated today that the average automotive manufacturer incentive in the U.S. was $2,557 per vehicle sold in September 2009, up $83, or 3.4 percent, from August 2009, and down $344, or 11.9 percent, from September 2008.
SANTA MONICA, Calif. — Edmunds.com estimated today that the average automotive manufacturer incentive in the U.S. was $2,557 per vehicle sold in September 2009, up $83, or 3.4 percent, from August 2009, and down $344, or 11.9 percent, from September 2008.
“After five straight months of decline, incentives are on the rise again,” stated Jessica Caldwell, director of industry analysis for Edmunds.com. “And now that Cash for Clunkers is over, automakers have to give consumers an incentive to buy — out of their own pockets, not the taxpayers.”
According to Edmunds.com, combined incentives spending for domestic manufacturers averaged $3,514 per vehicle sold in September 2009, up from $3,232 in August 2009. From August 2009 to September 2009, European automakers decreased incentives spending by $382 to $3,354 per vehicle sold; Japanese automakers decreased incentives spending by $64 to $1,514 per vehicle sold; and Korean automakers decreased incentives spending by $658 to $1,913 per vehicle sold.
True Cost of Incentives for the Top Seven Automakers | |||
Automaker | September | August | September |
Chrysler Group | $3,819 | $3,405 | $4,679 |
Ford | $2,994 | $3,156 | $3,639 |
General Motors | $3,769 | $3,273 | $3,957 |
Honda | $931 | $902 | $1,054 |
Hyundai | $ 1,913 | $2,571 | $2,316 |
Nissan | $2,603 | $2,568 | $2,104 |
Toyota | $1,516 | $1,628 | $1,374 |
Industry Average | $2,557 | $2,474 | $2,901 |
In September 2009, the industry's aggregate incentive spending is estimated to have totaled approximately $1.8 billion, down 39.4 percent from August 2009. Chrysler, Ford and General Motors spent an aggregate of $1.1 billion, or 58.6 percent of the total; Japanese manufacturers spent $471 million, or 25.1 percent; European manufacturers spent $215 million, or 11.4 percent; and Korean manufacturers spent $93 million, or 4.9 percent.
"Ford and Hyundai were able to cut back on spending this month, having gained momentum all year and getting an extra boost during Cash for Clunkers," commented Edmunds' AutoObserver.com Senior Editor Michelle Krebs. "Each of the other major automakers has its own challenges right now, and we anticipate incentives will continue to climb for most of them throughout the end of the year."
Among vehicle segments, premium sport cars had the highest average incentives, $10,128 per vehicle sold, followed by premium luxury cars at $6,551. Subcompact cars had the lowest average incentives per vehicle sold, $1,309, followed by compact cars at $1,477. Analysis of incentives expenditures as a percentage of average sticker price for each segment shows large cars averaged the highest, 13.5 percent, followed by large trucks at 12.8 percent of sticker price. Minivans averaged the lowest with 5.8 percent and compact SUVs followed with 6.9 percent of sticker price.
“High-end luxury cars are unpopular right now in part because the segment has lost many of the aspirational buyers who stretched to make the payments when the economy was stronger, and in part because some feel socially insensitive splurging on a flashy vehicle during these challenging economic times,” commented Caldwell.
Comparing all brands, in September Scion spent $311 followed by Honda at $808 per vehicle sold. At the other end of the spectrum, Cadillac spent the most, $9,233, followed by BMW at $6,321 per vehicle sold. Relative to their vehicle prices, Cadillac and Pontiac spent the most, 18.6 percent and 16.8 percent of sticker price, respectively; while Scion spent 1.8 and Honda spent 3.3 percent.
More F&I

Integrating Nontraditional F&I Products
The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.
Read More →
Trust Is Personal
Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.
Read More →
Amplify 2026 Billed as Turning Innovation Into Results
Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.
Read More →
Own Your Outcome: F&I in the Digital Customer Journey
Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Lifetime Battery F&I Product Meant to Drive Dealer Traffic
EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.
Read More →
The Psychology Behind Menus That Increase Add-On Sales
There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.
Read More →
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 →