Thursday, July 2, 2015

Record Sales Pace Partially Fueled by Record Incentives

Insane People at the Stock Photo Dealership

The Detroit Bureau is reporting that even though June was a record sales month for many automakers, many of those sales were partly fueled with record incentives from the manufacturer.

Buyers could get up to $8,000 knocked of the price of a Kia K900 or up to $7,000 off of Ford hybrids or electric cars — even $8,000 for the 2015 Ford C-Max Energi.

Despite the higher-than-normal incentives, the Detroit Bureau reported that the Average Transaction Price for a new car in June was $31,848, up around 1 percent over last year.

Two automakers increased spending on their incentives by more than 30 percent over the same time last year — Nissan and Hyundai. As a percentage of incentives offered to ATP, Kia (11.7 percent), Hyundai (10.5 percent), Nissan (10.3 percent), GM (10.2 percent) and FCA (10.2 percent) were the biggest spenders last month.

As expected, many of the heavily incentivized cars were slow-moving models or cars with narrow appeal, which automakers could immediately offset by selling massive amounts of huge crossovers with equally huge margins.

The post Record Sales Pace Partially Fueled by Record Incentives appeared first on The Truth About Cars.



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