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Sales came at a cost

by David Zatz on

Industry-wide, February’s US sales came at a steep cost in incentives — an average of over $3,400 per car, up 14% from last February.

GM led the pack, paying around $4,550 per car, but BMW and Daimler weren’t far behind, at over $4,400, according to ALG. For GM, that was a 13% hike over February 2016.

FCA and Ford were the next biggest spenders, at $4,187 and $4,096, respectively. That’s a 24% jump for Ford, and a 7% hike for FCA.  But even the imports were laying down cash on the hood: Nissan pumped up incentives to nearly $4,000, and both Toyota and formerly-incentive-resistant Honda went to over $2,100 per car. Volkswagen/Audi continued to buy customers at over $3,400 per sale.

While customers paid more, overall, for their cars this month, incentives increased at an even higher rate, accounting for over 10% the cost of each car or truck sold.

David Zatz founded Allpar in 1998 (based on a site he had begun in 1993-94), after years of writing reviews for retail trades. He has been quoted by the New York Times, the Daily Telegraph, the Detroit News, and USA Today. Before making Allpar a full-time career, he was a consultant in organizational psychology. You can reach him by using our contact form (much preferred) or by calling (313) 766-2304


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