June Is Priciest Ever for Automaker Incentives, Edmunds.com Reports
July 01, 2009
SANTA MONICA, Calif. -- Automakers spent more in June on incentives than any June on record, Edmunds.com reports.
The average automaker incentive was $2,930 per vehicle sold in June up $489 -- or 20 percent, from a year ago, Edmunds.com estimates. Incentives were down a scant $22, or 0.8 percent, from May.
"June incentives have never been higher, but we anticipate that the tide is about to turn," said Jesse Toprak, Edmunds.com's executive director of Industry Analysis. "The effects of recent production cuts are starting to be felt, and as supply dwindles, incentives will fall."
By region of origin, combined incentives spending for:
- domestic manufacturers averaged $3,821 per vehicle sold in June, up from $3,736 in May;
- European automakers declined from May $448 to $3,238 per vehicle sold;
- Japanese automakers decreased $169 to $1,729 per vehicle sold;
- Korean automakers increased by $252 to $3,083 per vehicle sold.
In June, the industry's aggregate incentive spending is estimated to have totaled approximately $2.6 billion, down 4.7 percent from May 2009.
Chrysler, Ford and General Motors spent an aggregate of $1.6 billion, or 60.3 percent of the total; Japanese manufacturers spent $574 million, or 22.1 percent; European manufacturers spent $253 million, or 9.7 percent; and Korean manufacturers spent $206 million, or 7.9 percent.
"This is the third consecutive month in which Honda set a new record for its spending," Toprak said. "Car-shoppers are focused on value right now, and some automakers are making a concerted effort to market their cars from that angle."
Among vehicle segments, premium sport cars had the highest average incentives, $5,481 per vehicle sold, followed by large trucks at $4,160. Subcompact cars had the lowest average incentives per vehicle sold, $1,207, followed by compact cars at $2,075.
Analysis of incentives expenditures as a percentage of average sticker price for each segment shows minivans averaged the highest at 13.1 percent of sticker price, followed by large cars at 12.9 percent of sticker price. Premium luxury cars averaged the lowest with 4.9 percent and premium sport cars followed with 5.9 percent of sticker price.
Comparing all brands, Scion spent the least at $205 followed by Mini at $579 per vehicle sold. At the other end of the spectrum, Cadillac spent the most at $6,069, followed by Hummer at $5,828 per vehicle sold.
Relative to their vehicle prices, Chrysler and Dodge spent the most, 17.8 percent and 16.8 percent of sticker price, respectively; while Scion spent 1.2 and Mini spent 2.6 percent.
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.
|
True Cost of Incentives for the Top Seven Automakers |
|||
|
Automaker |
June 2009 |
May 2009 |
June 2008 |
|
Chrysler Group (Chrysler, Dodge, Jeep) |
$4,873 |
$4,087 |
$3,589 |
|
Ford (Ford, Lincoln, Mercury, Volvo) |
$3,531 |
$3,626 |
$2,832 |
|
General Motors (Buick, Cadillac, Chevrolet, |
$3,566 |
$3,693 |
$3,662 |
|
Honda (Acura, Honda) |
$1,686* |
$1,652 |
$1,333 |
|
Hyundai (Hyundai, Kia) |
$3,083 |
$2,831 |
$1,958 |
|
Nissan (Infiniti, Nissan) |
$2,631 |
$2,718 |
$1,922 |
|
Toyota (Lexus, Scion, Toyota) |
$1,362 |
$1,714 |
$1,213 |
|
Industry Average |
$2,930 |
$2,952 |
$2,441 |
* Denotes an all-time record
Source: Edmunds.com
Posted by Michelle Krebs at 4:42 AM under Analysis , Chrysler , Featured , Ford , GM , Toyota | Comments (0) | digg this | Seed Newsvine
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