OEMs Maintain Prudence with Incentives
New-vehicle incentives are ticking a bit higher compared to this time last year, but analyses from a variety of outlets are showing automakers haven’t emptied their chambers in the incentive department — and as most know, strong incentives can potentially erode used values down the road.
Auto Remarketing examined incentive trends from CNW Research, Cars.com and TrueCar and determined only a couple of OEMs appear to have pushed incentives higher by significant levels.
According to Cars.com’s incentive projections, the industry handed out an overage of $2,580 per vehicle to move new metal in April, representing a 2.1 percent lift year-over-year. Asian automakers generated much of that overall uptick as Cars.com noted the increases utilized by Hyundai and Kia (up 37.1 percent to $1,895), Honda (up 21.3 percent to $1,946) and Toyota (up 13.5 percent to $1,789).
“Year-over-year incentive spending is still climbing quietly, and we expect overall incentive levels to continue to increase through the end of summer due to relatively high inventory levels,” Cars.com chief analyst Jesse Toprak said.
Meanwhile, analysis from TrueCar painted a similar incentive picture. Analysts there projected April incentive figures for the industry at an average of $2,751 per vehilcle, up 8.9 percent from the same month last year. Along with Hyundai, Kia and Honda, TrueCar also mentioned that Nissan goosed its incentive spending in April, pushing it up 27.6 percent from a year ago to $2,763.
“Automakers were determined to make sure March sales momentum continued in April, putting sales back on track for 2014,” said Larry Dominique, president of ALG and executive vice president of TrueCar. “This month, the Asian manufacturers turned up the incentive dial, while the domestic manufacturers remained more restrained.”
Looking back at March data, CNW computed that automakers averaged $3,154 in incentives.
The firm also offered total discount figures — a combination of manufacturer and dealer incentives — on more than 200 specific models from nearly all major automakers. Here is a sampling of metrics connected to high-volume units:
—Chevrolet Cruze: $2,677
—Chevrolet Malibu: $4,446
—Chevrolet Silverado: $6,149
—Dodge Charger: $6,187
—Ford Focus: $2,454
—Ford Fusion: $3,984
—Ford F-150: $6,560
—Honda Civc: $3,545
—Honda Accord: $3,493
—Hyundai Elantra: $1,800
—Hyunda Sonata: $4,045
—Jeep Grand Cherokee: $3,908
—Nissan Sentra: $1,789
—Nissan Altima: $3,748
—Ram 1500: $4,985
—Toyota Corolla: $1,727
—Toyota Camry: $3,972