The average automotive manufacturer incentive in the US per vehicle sold in February 2006 was US$2,285, down $140, or 6%, from January 2006, and down $84, or 4%, from February 2005, according to Edmunds.com.
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The analyst’s monthly True Cost of Incentives report said the industry’s aggregate incentives spending is estimated to have totalled approximately $2.9bn in February, up from nearly $2.7bn in January.
Chrysler, Ford and General Motors spent an aggregate of $2.07bn, or 72% of the total; Japanese manufacturers spent $502m, or 17%; European manufacturers spent $210m, or 7%; and Korean manufacturers spent $106m, or 4%.
“Even though incentive levels are falling, the aggregate dollar amounts are still staggering,” noted Edmunds’ chief analyst Jane Liu. “The month-over-month increase is seasonal; February’s vehicle sales are typically 10 to 15% higher than January’s even though the month is three days shorter.”
Combined incentives spending for domestic manufacturers averaged $2,934 per vehicle sold in February, down from $3,167 in January 2006. Chrysler’s incentives spending was down $352 to $3,839 per vehicle sold; Ford’s incentives spending was down $48 to $2,778 per vehicle sold; and General Motors decreased its incentives by $298 to $2,540 per vehicle sold.
From January to February, European automakers increased incentives spending by $128 to an average of $2,506 per vehicle sold; Japanese automakers decreased incentives spending by $58 to $1,196 per vehicle sold; and Korean automakers decreased incentives spending by $40 to an average of $1,963 per vehicle sold.
Comparing all brands, in February Scion spent the least, $91, followed by Honda at $330 per vehicle sold. At the other end of the spectrum, Jaguar spent the most, $6,580, followed by Lincoln at $5,063 per vehicle sold.
Relative to their vehicle prices, Jeep and Dodge spent the most, 14.6% and 14.0% of sticker price, respectively, while Scion and Porsche spent the least at 0.6% each.
Among vehicle segments, large SUVs continued to have the highest average incentives, $4,917 per vehicle sold, followed by large trucks at $3,517 per vehicle sold. Sport cars had the lowest average incentives per vehicle, $505, followed by compact cars at $969 per vehicle. Analysis of incentives expenditures as a percentage of average sticker price for each segment shows large SUVs averaged the highest, 11.2%, followed by minivans at 10.7% of sticker price. Sports cars averaged the lowest, 1.6%, followed by luxury SUVs at 3.7% of sticker price.
