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Incentives shooting higher

by David Zatz on

Automakers piled cash on the hood in March, with an average US incentive hike of 13.4%, according to TrueCar and ALG.  Everyone  but BMW had bigger incentives — but while BMW’s number dropped, it was coming down from a crazy high of $5,128 per car last March.

FCA’s slapped 7% more cash on the hood (vs March 2016), going up to $4,327 — the third highest of any automaker, after General Motors ($4,892) and BMW ($4,514).


GM has been doing well in reviews and quality ratings, but they got stuck with far too much inventory and a truck price war with Ford. Quality and product are also not enough to sell cars, which explains why Kia and Hyundai, selling quite similar vehicles, had incentives $600 apart and continue to have rather different sales tracks.

Nissan was by far the biggest spender among the Japanese, with $4,074 per car. Daimler spent $4,151 per car in their odd sales fight with BMW, while Volkswagen, which includes Audi and Porsche, came in with $3,808 per car.

The happy outlier was Subaru, setting down just $901 per car — less than half the next lowest giveaway.

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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