Transaction Prices Fall; Incentives Up for November
TrueCar.com estimated that the average transaction price for light vehicles in the United States was $29,136 in November, down $735 (2.5 percent) from November 2009 and down $435 (1.6 percent) from October 2010.
SANTA MONICA, Calif. — TrueCar.com estimated that the average transaction price for light vehicles in the United States was $29,136 in November, down $735 (2.5 percent) from November 2009 and down $435 (1.6 percent) from October 2010.
"Cash for Clunkers pushed forward the sale of cheaper and more fuel-efficient cars last year, pushing luxury and SUV/truck buyers purchases into the fourth quarter," said Jesse Toprak, vice president of industry trends and insights for TrueCar.com. "This November, we're seeing a more balanced picture of the industry, even with a strong mix of truck and SUV sales."
Transaction Pricing Forecast
Manufacturer | Nov. 2010 Transaction Price | Oct. 2010 Transaction Price | Nov. 2009 Transaction Price | Change Nov. 2010 to Nov. 2009 | Change Nov. 2010 to Oct. 2010 |
Chrysler | $29,283 | $29,164 | $28,552 | 2.6% | 0.4% |
Ford | $32,033 | $31,886 | $32,017 | 0.1% | 0.5% |
GM | $34,739 | $34,605 | $34,459 | 0.8% | 0.4% |
Honda | $25,164 | $25,094 | $25,465 | -1.2% | 0.3% |
Hyundai | $20,443 | $20,431 | $20,249 | 1.0% | 0.1% |
Kia | $18,611 | $18,504 | $18,490 | 0.7% | 0.6% |
Nissan | $27,447 | $20,431 | $27,417 | 0.1% | 34.3% |
Toyota | $25,238 | $25,200 | $25,751 | -2.0% | 0.1% |
Industry | $29,136 | $29,601 | $29,871 | -2.5% | -1.6% |
In addition, TrueCar.com estimated that the average incentive for light-vehicles was $2,712 in November 2010, up $12 (0.4 percent) from November 2009 and up $162 (6.4 percent) from October 2010.
"Even though incentives appear to be slightly higher this year, automakers are becoming smarter by focusing on low APR and special lease programs — strategies with relatively low costs due to near zero interest rates and much improved residual values," said Toprak.
Incentive Spending Forecast
Manufacturer | Nov. 2010 Incentives | Oct. 2010 Incentives | Nov. 2009 Incentives | Change Nov. 2010 to Nov. 2009 | Change Nov. 2010 to Oct. 2010 |
Chrysler | $3,452 | $3,400 | $3,550 | -2.8% | 1.5% |
Ford | $2,942 | $2,750 | $2,650 | 11.0% | 7.0% |
GM | $3,350 | $3,100 | $4,000 | -16.3% | 8.1% |
Honda | $2,162 | $2,000 | $1,350 | 60.1% | 8.1% |
Hyundai/Kia | $1,801 | $1,700 | $2,050 | -12.1% | 5.9% |
Nissan | $2,764 | $2,550 | $2,700 | 2.4% | 8.4% |
Toyota | $2,220 | $2,100 | $1,650 | 34.5% | 5.7% |
Industry | $2,712 | $2,550 | $2,700 | 0.4% | 6.4% |
More F&I
How AI-Powered Coaching Is Transforming F&I Performance
See how AI-powered coaching can turn F&I customer conversations into actionable insights that support compliance, performance and profitability
Read More →
Sell Value, Build Trust
In this video, Trent White explains why selling on value, not fear, builds lasting customer trust, reduces cancellations, and drives long-term success.
Read More →
F&I Sales Give Dealers First-Half Lift
Product business shored up total profits to avoid an overall revenue tanking as product penetrations held steady, StoneEagle reported.
Read More →
Targeted Training Drives Results
Today’s technology, instead of threatening F&I managers, can actually make them better, according to an industry veteran who’s watched market setbacks roil the unprepared.
Read More →
Double the Change, Double the Chance
When an F&I manager gets a customer refusal, it’s a wise move to tweak more than one thing in the product offering.
Read More →
Just Do It
F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Leading with Purpose
In this video, Trent White explains how understanding your people’s 'why' is a key leadership responsibility of F&I professionals and how that mindset drives dealership engagement, trust and performance.
Read More →
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 →