FOR IMMEDIATE RELEASE
Edmunds.com Reports True Cost of Incentives: Incentives Rise for 2010 Model Year Vehicles
SANTA MONICA, Calif. — December 1, 2009 — Edmunds.com, the premier online resource for automotive information, estimated today that the average automotive manufacturer incentive in the U.S. was $2,713 per vehicle sold in November 2009, up $52, or 1.9 percent, from October 2009, and up $32, or 1.9 percent, from November 2008.
"Now that 2010 models are piling up on dealership lots, incentives on the new models are increasing, up 21 percent from last month," stated Jessica Caldwell, Director of Industry Analysis for Edmunds.com.
According to Edmunds.com, combined incentives spending for domestic manufacturers averaged $3,712 per vehicle sold in November 2009, down from $3,844 in October 2009. From October 2009 to November 2009, European automakers increased incentives spending by $200 to $3,186 per vehicle sold; Japanese automakers increased incentives spending by $117 to $1,547 per vehicle sold; and Korean automakers decreased incentives spending by $38 to $1,946 per vehicle sold.
|True Cost of Incentives for the Top Seven Automakers|
|Automaker||November 2009||October 2009||November 2008|
|Chrysler Group (Chrysler, Dodge, Jeep)||$3,298||$3,753||$3,514|
|Ford (Ford, Lincoln, Mercury, Volvo)||$3,124||$3,052||$3,818|
|General Motors (Buick, Cadillac, Chevrolet, GMC, Hummer, Pontiac, Saab, Saturn)||$4,270||$4,398||$3,350|
|Honda (Acura, Honda)||$1,195||$850||$1,115|
|Hyundai (Hyundai, Kia)||$1,946||$1,984||$2,607|
|Nissan (Infiniti, Nissan)||$2,011||$2,544||$2,248|
|Toyota (Lexus, Scion, Toyota)||$1,704||$1,469||$2,005|
In November 2009, the industry's aggregate incentive spending is estimated to have totaled approximately $1.92 billion, down 13.6 percent from October 2009. Chrysler, Ford and General Motors spent an aggregate of $1.2 billion, or 62.4 percent of the total; Japanese manufacturers spent $421 million, or 21.8 percent; European manufacturers spent $219 million, or 11.4 percent; and Korean manufacturers spent $84 million, or 4.4 percent.
"Not surprisingly, GM is forced to spend handsomely on incentives — using taxpayer money — to wind down the Saturn and Pontiac brands and to keep Hummer and Saab afloat," commented Edmunds' AutoObserver.com Senior Editor Michelle Krebs.
Among vehicle segments, premium sport cars had the highest average incentives, $9,429 per vehicle sold, followed by large SUV at $4,974. Subcompact cars had the lowest average incentives per vehicle sold, $1,090, followed by compact cars at $1,523. Analysis of incentives expenditures as a percentage of average sticker price for each segment shows large trucks averaged the highest, 13.9 percent, followed by large SUVs at 12.3 percent of sticker price. Premium luxury cars averaged the lowest with 5.3 percent and sport cars followed with 5.6 percent of sticker price.
Comparing all brands, in November Scion spent $375 followed by smart at $586 per vehicle sold. At the other end of the spectrum, HUMMER spent the most, $5,975, followed by Cadillac at $5,787 per vehicle sold. Relative to their vehicle prices, Pontiac and Saturn spent the most, 19.2 percent and 16.8 percent of sticker price, respectively; while Scion spent 2.2 and Subaru spent 2.6 percent.
"Increased leasing incentives accounted for significant TCI boosts for Honda and Toyota," observed Caldwell.
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.
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. 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.