I told our CarProShow radio listeners
all month long that the incentives were sky high in July. A company called ALG estimates manufacturer incentive spending monthly and they are pretty accurate.
ALG pegged the average incentive for July was $3671, down just slightly from July 2018. The difference is probably a huge number of new entries on the market that need zero incentives.
The spending by automaker includes any rebates, lease incentives, loyalty awards, and interest rate buy-downs, like to 0% APR. July interest rates on new financed vehicles averaged 5.8 percent in July, down slightly from 6 percent in June. 35 percent of shoppers who financed a new vehicle in July received an interest rate below 4 percent, compared to 31 percent of buyers who financed purchases in June. As we know, the Federal Reserve lowered interest rates for the first time in over a decade just last week.
August is the traditional beginning of the closeout season, meaning special attention to moving the 2019 models. This will typically result in higher incentives and deeper dealer discounts.
BMW spent almost $6,000 for every vehicle that sold, and as always, little Subaru spent the least.
Here are the estimates of July incentive spending by brand:
|BMW ||$5,981 |
|Daimler ||$5,388 |
|General Motors ||$5,058 |
|Fiat Chrysler ||$4,679 |
|Ford ||$4,528 |
|Nissan ||$3,904 |
|VW ||$3,562 |
|Kia ||$3,543 |
|Hyundai ||$2,716 |
|Toyota ||$2,388 |
|Honda ||$2,017 |
|Subaru ||$1,473 |Remember:
Incentives are regional, so to find out what the incentives are on the vehicle you are interested in, go to our revamped incentive page at CarProUSA.com
. Bookmark this link, but remember, make sure you use your home zip code: