DOW JONES NEWSWIRES
Average per-vehicle incentives from U.S. auto makers were
essentially flat in January from December, but they jumped 7.5%
from a year earlier, according to Edmunds.com
Director Jessica Caldwell said the fact that incentives were
flat sequentially indicated many car buyers didn't actually have to
rush to take advantage of heavily advertised "year end" deals.
"Dealerships and auto makers look to finish the year with strong
sales numbers, and they've become very skilled at leading consumers
to believe that the best deals are only available in December,"
said Caldwell. "It's simply not true for most brands."
General Motors Co. (GM) spent 29% more on incentives in January
from a year ago, while Chrysler Group LLC spent 12% more and Toyota
Motor Corp.'s (TM, 7203.TO) incentive spending surged 38%. Honda
Motor Co. (HMC, 7267.TO) also spent more.
Caldwell said GM's incentive spending in January suggested that
their new model year vehicles "are more heavily discounted than one
might expect."
Ford Motor Co. (F) and Nissan Motor Co. (NSANY, 7201.TO) each
spent less on incentives, with their costs falling 7% and 7.8%,
respectively, from a year earlier.
The industry gave out an average $2,530 for each vehicle sold
last month, down $8 from December.
Among vehicle segments, large cars had the highest average
incentives, followed by large trucks. Subcompact cars had the
lowest, with compact SUVs next.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com