| Jun 09, 2010
Edmunds estimated that the average automotive
manufacturer incentive in the U.S. was $2,603 per vehicle sold in May
2010, down $28, or 1.1 percent, from April 2010, and down $340, or 11.6
percent, from May 2009.
"Inventory levels are relatively low, so many automakers have cut
back on incentives," stated Jessica Caldwell, director of industry
analysis for Edmunds.com. "Bargain-hunters planning to hold out for
traditional late summer deals would be wise to start shopping now, since
there is a less dramatic need for old model year clearance sales this
year and the 2010 inventory is already slim pickings.”
According to Edmunds.com, combined incentives spending for domestic
manufacturers averaged $3,366 per vehicle sold in May 2010, up from
$3,298 in April 2010. From April 2010 to May 2010, European automakers
decreased incentives spending by $211 to $2,300 per vehicle sold;
Japanese automakers decreased incentives spending by $148 to $1,913 per
vehicle sold; and Korean automakers decreased incentives spending by $29
to $1,738 per vehicle sold.
True Cost of Incentives for the Top Seven
*Denotes a record high
In May 2010, the industry's aggregate incentive spending is estimated
to have totaled approximately $2.81 billion, up 9.1 percent from April
2010. Chrysler, Ford and General Motors spent an aggregate of $1.7
billion, or 59.7 percent of the total; Japanese manufacturers spent $786
million, or 27.9 percent; European manufacturers spent $208 million, or
7.4 percent; and Korean manufacturers spent $140 million, or 4.9
"Compared with three years ago, the Japanese automakers have
increased their incentives spending by 62 percent while domestic
automakers are spending a mere seven percent more," noted Edmunds.com
Senior Analyst Michelle Krebs in her report on AutoObserver.com. “In the
same period, Japanese market share has only increased by two percent
while domestic market share went down by 10 percent.”
Among vehicle segments, large trucks had the highest average
incentives, $4,650 per vehicle sold, followed by premium sport car at
$3,892. Sport cars had the lowest average incentives per vehicle sold,
$1,263, followed by subcompact cars at $1,296. Analysis of incentives
expenditures as a percentage of average sticker price for each segment
shows large trucks averaged the highest, 12.7 percent, followed by
compact cars at 11.5 percent of sticker price. Premium luxury cars
averaged the lowest with 2.3 percent and sport cars followed with 3.6
percent of sticker price.
Comparing all brands, in May Scion spent the least, $457 followed by
Subaru at $667 per vehicle sold. At the other end of the spectrum, Saab
spent the most, $6,813, followed by Lincoln at $4,987 per vehicle sold.
Relative to their vehicle prices, Saab and Chrysler spent the most, 17.1
percent and 12.2 percent of sticker price, respectively; while Porsche
spent 1.7 and Subaru spent 2.6 percent.
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