GM Surprises Industry with Lower Incentives in July, Reports Edmunds.com
GM Surprises Industry with Lower Incentives in July, Reports Edmunds.com
SANTA MONICA, Calif. — August 1, 2012 — Car incentives remained relatively stable in July reports Edmunds.com, the premier online resource for automotive information, but the stability of General Motors stands out the most, following the company's heavily publicized marketing program launched earlier last month.
According to Edmunds.com's True Cost of Incentives® (TCISM), GM incentives fell 0.3% from June to July, despite launching Chevy Total Confidence, which promises "a great deal on your Chevy, with no need to negotiate." Surprisingly, GM's spending on Chevrolet alone is down even more, from $3,328 in June to $3,176 in July (-4.6%).
"Savvy consumers don't see tremendous value in the Total Confidence program," says Edmunds.com Senior Analyst Jessica Caldwell. "The Total Confidence pricing is similar in many cases to our True Market Value® pricing — and for some vehicles, it was even higher. So, depending on the situation, a consumer could have gotten a better deal before the program started."
| Manufacturer | Jul-12 | Jun-12 | Jul-11 | July 2012 vs June 2012 | July 2012 vs July 2011 |
|---|---|---|---|---|---|
| Chrysler | $2,731 | $2,548 | $2,778 | 7.2% | -1.7% |
| Ford | $2,742 | $2,674 | $2,754 | 2.5% | -0.4% |
| GM | $3,311 | $3,322 | $3,139 | -0.3% | 5.5% |
| Honda | $1,236 | $1,450 | $1,624 | -14.8% | -23.9% |
| Nissan | $2,827 | $2,388 | $2,442 | 18.4% | 15.8% |
| Toyota | $1,577 | $1,515 | $2,202 | 4.1% | -28.4% |
| Industry | $2,236 | $2,223 | $2,384 | 0.6% | -6.2% |
The biggest change in incentive spend came from Nissan, climbing 18.4 percent month over month thanks mostly to a surge in incentives (+22%) on its luxury brand Infiniti. Overall, Edmunds.com's TCISM data shows that the auto industry spent $2,236 per vehicle this month, up 0.6 percent from June, but down 6.2 percent from July 2011.
As always, shoppers can find the vehicles with the most compelling deals on Edmunds.com's True Market Value® Deals of the Month page. Edmunds.com also helps consumers get a sense of whether right now is a good time to buy specific new car models with its TMV® Predicted Price Trends.
Edmunds.com's monthly True Cost of Incentives® (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, the premier online resource for automotive information, launched in 1995 as the first automotive information Web site. Its acclaimed mobile site, Edmunds.com Android App and five-star Edmunds iPhone and iPad apps make car pricing and other research tools available for car shoppers at dealerships and on the go. Its automotive enthusiast web site, InsideLine.com, is the most-read car publication of its kind. Its highly regarded mobile site and iPhone app features the wireless Web's most comprehensive gallery of automotive photos and videos. Edmunds 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.
