Chrysler was top spender on August incentives

Chrysler piled on the incentives last month, spending an average of $4,366 per vehicle, $344 more than in July and $597 more than last August. As a percentage of MSRP, Chrysler’s 17.6 percent was second only to Hummer’s 22.6 percent.

Ford incentives averaged $3,443, the lowest of the Detroit Three. That was an increase of $241 over July and $304 from August 2007. GM cut its spending from July: GM’s average of $3,865 per vehicle was $198 less than it spent in July but $536 more than it spent last August.

“Contrary to what you would expect, General Motors’ Employee Discount for Everyone program did not inflate GM’s incentive spending for the month of August,” stated Jesse Toprak, Executive Director of Industry Analysis for Edmunds.com. “In fact, because the program required dealers to participate and subsidize part of the offer, the result was a net decrease in GM’s overall incentive costs.”

According to Edmunds.com, the average industry-wide incentive in the U.S. was $2,642 per vehicle sold in August 2008, down $3 from July 2008, but up $173 from August 2007. The Detroit automakers spent an average of $3,832 per vehicle sold in last month about $70 more than they offered in July. ; Japanese automakers decreased incentives spending by $9 to $1,492 per vehicle and Korean automakers trimmed spending by $53 to $2,079 per vehicle sold. The European automakers decreased per-vehicle incentives by $811 to $2,578.

“Overall incentive levels rose from last year,” said Michelle Krebs, senior editor of Edmunds’ AutoObserver.com. “Automakers are desperately trying to get rid of 2008 inventory in a weak economy as new model inventory arrives on dealer lots.”

Luxury cars carried the highest average incentives, $7,198 per vehicle sold, followed by large SUVs at $6,211. At the other end of the scale, subcompacts averaged $531; compacts got $961. Based on average MSRP in each segment, large pickups averaged the highest, 17.2 percent of sticker price while full-size SUVs came with an average 16.2 percent discount. Subcompacts were discounted the least, averaging 3.4 percent just below premium sport cars at 4.8 percent.

Comparing brands, Mini spent just $80 and Scion offered $131 per vehicle sold. Hummer piled $8,861 on the hood, more than any other brand, followed by Cadillac at $7,006.

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