Incentive Spending On the Rise as Summer Months Fade - Hawaii News Now - KGMB and KHNL

Incentive Spending On the Rise as Summer Months Fade

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SOURCE Cars.com

July Industry ATP down nearly 4% YoY, incentive spending highest since August 2010

CHICAGO, Aug. 1, 2014 /PRNewswire/ -- Cars.com, the leading online resource for buying and selling new and used cars and a comprehensive automotive digital marketing company, estimated today that July's Average Transaction Price (ATP) for new light-vehicle sales in the United States was $29,784, down 1.1 percent (-$324) from last month and 3.7 percent (-$1,128) from July 2013.

"Generous summer discounts are evident in July's ATP and incentives spending figures," said Jesse Toprak, chief analyst at Cars.com. "ATPs fell by almost 4 percent while incentives were up by more than 8 percent compared to this time last year. A struggling full-size truck segment and strong sales for small SUVs resulted in lower ATPs, while an early start to summer clearance sales pushed incentives up to their highest level since August 2010."

Volkswagen and Chrysler-Fiat are the only two manufacturers projected to see significant year-over-year increases in ATP at 8.8 percent and 5.0 percent respectively. Nissan, Honda, Ford and Toyota all are estimated to see a substantial year-over-year decrease in ATP, while GM and Hyundai/Kia should remain flat year-over-year.

Incentive spending in July is projected to increase less than 1 percent ($23) from June, but rise a hefty 8.4 percent ($216) year-over-year. The average incentive amount for light vehicles this month was $2,774, with Hyundai/Kia, Ford, Toyota and Volkswagen all forecasted to see double-digit increases in spending, compared to July 2013. At an average incentive of $2,205, Toyota will close the month with its largest incentives since September 2011, while Honda is expected to see the greatest drop in incentive spending of Big 8 manufacturers with an 8.1 percent year-over-year decrease.

Manufacturer

July 2014 Forecast Transaction Price

June 2014 Transaction Price

July 2013 Transaction Price

Percent Change July 2013 to July 2014

Percent Change June 2014 to July 2014

Fiat-Chrysler

$       31,302

$       31,389

$       29,814

5.0%

-0.3%

Ford

$       31,508

$       31,796

$       33,207

-5.1%

-0.9%

GM

$       33,397

$       34,504

$       33,228

0.5%

-3.2%

Honda

$       25,518

$       25,409

$       27,208

-6.2%

0.4%

Hyundai/Kia

$       22,486

$       22,568

$       22,465

0.1%

-0.4%

Nissan

$       24,612

$       24,585

$       28,265

-12.9%

0.1%

Toyota

$       27,896

$       28,321

$       29,139

-4.3%

-1.5%

Volkswagen

$       36,587

$       37,042

$       33,614

8.8%

-1.2%

Industry

$       29,784

$       30,108

$       30,912

-3.7%

-1.1%

 

Manufacturer

July 2014 Forecast Incentives

June 2014 Incentives

July 2013 Incentives

Percent Change July 2013 to July 2014

Percent Change June 2014 to July 2014

Fiat-Chrysler

$         3,348

$         3,426

$         3,155

6.1%

-2.3%

Ford

$         3,420

$         3,334

$         2,983

14.6%

2.6%

GM

$         3,512

$         3,398

$         3,590

-2.2%

3.4%

Honda

$         1,624

$         1,824

$         1,768

-8.1%

-11.0%

Hyundai/Kia

$         2,006

$         2,045

$         1,620

23.8%

-1.9%

Nissan

$         2,462

$         2,254

$         2,389

3.1%

9.2%

Toyota

$         2,205

$         2,075

$         1,781

23.8%

6.3%

Volkswagen

$         2,976

$         2,912

$         2,547

16.9%

2.2%

Industry

$     2,774

$     2,751

$     2,558

8.4%

0.8%

ABOUT CARS.COM
Cars.com is an award-winning online destination for car shoppers that offers information from consumers and experts to help buyers formulate opinions on what to buy, where to buy and how much to pay for a car. Cars.com offers thousands of new and used vehicle listings, consumer reviews, side-by-side comparison tools, photo galleries, videos, unbiased editorial content and many other tools to take the drama out of car shopping. Cars.com puts millions of car buyers in control of their shopping process with the information they need to make confident buying decisions. Launched in June 1998, Cars.com is a division of Classified Ventures LLC.

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