Automakers spent $2,135 per car on incentives in May
by Michael Ouellette
Ford increased its spending the most with a 9.3 per cent increase over April.
SANTA MONICA, Calif.—Auto manufacturers spent $2,135 per vehicle on incentives in May, up 3.9 per cent from April, and up 0.6 per cent from May 2011, according to automotive research firm Edmunds.com.
“It’s likely that incentives will continue a slow but steady rise in the coming months,” says Edmunds.com senior analyst Jessica Caldwell. “There will be bigger discounts available on 2012 models through the summer to help dealers clear the way for incoming 2013 models. In fact, 2013 models already account for about 6.5 per cent of new car sales.”
Among the Big Six manufacturers, Ford increased its spending the most with a 9.3 per cent increase over April.
Nissan followed behind with a month-over-month incentives increase of nine per cent.
Edmunds.com analysts say that both increases are corrective measures after Ford and Nissan slashed incentive spending in April and suffered hits to their market shares.
Chevrolet had the biggest discounts in May, offering an average of 10.7 per cent off MSRP, compared to 11 per cent in April.
Mazda was the stingiest OEM in May, offering 7.2 per cent off MSRP after pushing the fourth highest discount—9.3 per cent off MSRP— in April.
|Average True Cost of Incentives by Car Manufacturer:|
vs Apr 2012
vs May 12011