2011 Model Year Inventory Running Out Quickly, Says Edmunds.com; "Days to Turn" Rate Lowest on Record
SANTA MONICA, Calif. — October 31, 2011 — Edmunds.com, the premier online resource for automotive information, noted today that October may officially be the turning point for the automotive model year.
In October, 2012 model year vehicles made up 52.3 percent of new car sales; in September the figure was only 35 percent. Chrysler and Honda were among the brands that practically doubled their 2012 sales penetration from September levels, while Toyota more than tripled its 2012 share this month.
As a result, average industry incentive spending decreased in October, since the newer model year vehicles are hardly discounted compared to the 2011 models.
On average, automakers spent an average of $2,158 on vehicle incentives per vehicle sold in October, said Edmunds.com, down 12.1 percent from September and down 11.5 percent from October 2010.
Edmunds.com analysts determined that 2011 model year incentives are essentially flat from September, while 2012 model year incentives climbed a slight five percent.
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"The 'days to turn' rate, which counts the days a car is on the dealership lot before it is sold, is at the lowest point we have on record," said Jessica Caldwell, senior analyst at Edmunds.com. "Production is a lot leaner for the domestics these days, while Honda and Toyota are still rebuilding inventory after the earthquake."
Edmunds.com's monthly True Cost of IncentivesSM (TCISM) 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.
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Edmunds.com Inc. publishes Web sites that empower, engage and educate automotive consumers, enthusiasts and insiders. Edmunds.com, the premier online resource for automotive information, launched in 1995 as the first automotive information Web site and hosts the most established automotive community online. Its mobile site, accessible from any smartphone at www.edmunds.com, makes car pricing and other research tools available for car shoppers at dealerships and otherwise on the go. InsideLine.com is the most-read automotive enthusiast Web site. Its mobile site, accessible from any smartphone at www.insideline.com, features the wireless Web's highest quality car photos and videos. AutoObserver.com provides insightful automotive industry commentary and analysis. Edmunds.com Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit. Follow Edmunds.com on Twitter@edmunds and fan Edmunds.com on Facebook at http://www.facebook.com/edmunds.