FOR IMMEDIATE RELEASE
Edmunds.com Reports True Cost of Incentives for July: Record High Incentives for Japanese Automakers
SANTA MONICA, Calif. — August 1, 2007 — Edmunds.com, the premier online resource for automotive information, estimated today that the average automotive manufacturer incentive in the U.S. was $2,524 per vehicle sold in July 2007, up $102, or 4.2 percent, from June 2007, and down $286, or 10.2 percent, from July 2006.
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.
According to Edmunds.com, combined incentives spending for domestic manufacturers averaged $3,268 per vehicle sold in July 2007, up from $3,155 in June 2007. From June to July, European automakers increased incentives spending by $350 to $3,292 per vehicle sold; Japanese automakers increased incentives spending by $33 to $1,536 per vehicle sold; and Korean automakers increased incentives spending by $77 to $1,681 per vehicle sold.
In July, the industry's aggregate incentive spending is estimated to have totaled approximately $3.46 billion, essentially unchanged from June. Chrysler, Ford and General Motors spent an aggregate of $2.25 billion, or 65.0 percent of the total; Japanese manufacturers spent $798 million, or 23.0 percent; European manufacturers spent $297 million, or 8.6 percent; and Korean manufacturers spent $118 million, or 3.4 percent.
"We are seeing combined incentive spending for Japanese automakers reach record highs this month," stated Jesse Toprak, Executive Director of Industry Analysis for Edmunds.com. "Even Toyota was aggressive — with its highest ever month — to help fuel sluggish sales."
|True Cost of Incentives for the "Big Six" Automakers|
|Automaker||July 2007||June 2007||July 2006|
Among vehicle segments, large trucks had the highest average incentives, $4,017 per vehicle sold, followed by large SUV's at $3,847. Compact cars had the lowest average incentives per vehicle sold, $1,068, followed by sport cars at $1,135. Analysis of incentives expenditures as a percentage of average sticker price for each segment shows large cars averaged the highest, 13.9 percent, followed by large trucks at 12.7 percent of sticker price. Sport cars averaged the lowest, 3.9 percent, followed by luxury sports cars at 4.4 percent of sticker price.
"Large trucks continue to see the highest level of incentive spending, as sales have steadily slowed down," commented Edmunds' AutoObserver.com Senior Editor Michelle Krebs. "Incentives on trucks should continue to increase since over the weekend GM added zero percent financing for 60 months on its large trucks."
Comparing all brands, in July Mini spent the least, virtually nothing, followed by Scion at $114 per vehicle sold. At the other end of the spectrum, Cadillac spent the most, $6,605, followed by Saab at $6,285 per vehicle sold. Relative to their vehicle prices, Saab and Jeep spent the most, 19.0 percent and 17.1 percent of sticker price, respectively, while Mini spent essentially nothing and Porsche spent just 0.6 percent.
About Edmunds Inc. (http://www.edmunds.com/about/)
Edmunds Inc. publishes four Web sites that empower, engage and educate automotive consumers, enthusiasts and insiders. Edmunds.com, the premier online resource for automotive consumer information, launched in 1995 as the first automotive information Web site. Its most popular feature, the Edmunds.com True Market Value®, is relied upon by millions of people seeking current transaction prices for new and used vehicles. Edmunds.com was named "Best Car Research Site" by Forbes ASAP, has been selected by consumers as the "Most Useful Web Site" according to every J.D. Power and Associates New Autoshopper.com Study(SM), was ranked first in the Survey of Car-Shopping Web Sites by The Wall Street Journal and was rated "#1" in Keynote's study of third-party automotive Web sites. Inside Line launched in 2005 and is the most-read automotive enthusiast Web site. CarSpace launched in 2006 and is an automotive social networking Web site and home to the oldest and most established automotive community. AutoObserver.com launched in 2007 and provides insightful automotive industry commentary and analysis. Edmunds Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit.