Posts Tagged ‘auto incentives’
Buyers spending more – but taking longer to pay off loans.
by Joseph Szczesny on Mar.22, 2013
U.S. car sales are maintaining a strong pace for March, according to several mid-month reports.
New car sales have remained steady in March and are expected to increase by 8 to 10%, year-over-year, according to new estimates from J.D. Power and Associates.
Using data from a broad network of dealers, Power estimates both retail light-vehicle sales and the total light-vehicle rate are consistent with February’s strong performance market. That would work out to around 12.1 million vehicles by consumers and 15.3 million when fleet buyers are included in the mix.
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Retail transactions are the most accurate measurement of true underlying consumer demand for new vehicles. They also tend to be more profitable than fleet sales, especially those to daily rental companies. Most makers have been shifting focus to the retail side of the market – in part because that also tends to prop up residuals, or trade-in values.
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Tags: auto incentives, auto loans, auto news, car incentives, car news, joe szczesny, longer auto loans, march 2013 car sales, march auto sales, march car sales, thedetroitbureau
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Detroit punches back as strong housing spurs truck demand.
by Paul A. Eisenstein on Mar.01, 2013
Truck sales helped lead a strong February for Detroit, spurred by a reviving housing market.
What budget crisis? Despite the ongoing battle on Capitol Hill that, for at least the moment, is expected to trigger billions in government spending cuts, the auto industry is weighing in with what appears to have been a solid February – buoyed by a recovery in another key sector of the economy.
“The housing sector has now joined auto sales in propelling the U.S. economy forward,” said Kurt McNeil, vice president of U.S. sales operations for General Motors, which reported a 7% increase, year-over-year. “More importantly, the recovery in new home construction is reinforcing the underlying improvement in auto buying conditions, especially for pickups.”
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Domestic makers GM, Ford Motor Co. and Chrysler LLC all reported solid gains for February — the smallest of the Detroit Big Three reporting its best February in five years – while Volkswagen and Toyota also reported modest sales gains. The torrid pace appears to meet or even exceed the most optimistic sales forecasts for all 2012, even before the industry enters the traditional spring buying season.
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Tags: Ford Sales, GM sales, VW sales, auto incentives, auto news, auto sales, car news, car sales, cars housing, chrysler sales, february 2013 auto sales, february 2013 car sales, housing market auto sales, housing market recovers, joe szczesny, thedetroitbureau, toyota sales, truck sales
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Transaction prices up $1,000 since last year.
by Joseph Szczesny on Feb.25, 2013
Strong demand is leading makers to ramp up production for vehicles like the Jeep Grand Cherokee.
February vehicle sales are heading for another solid month despite headwinds such as economic turbulence created by gridlock in Washington D.C. and a spike in gasoline prices, according to those who track trends on the showroom floor.
The surge in demand is coming despite an ongoing cutback in incentives by automotive manufacturers. In fact, buyers are spending significantly more to drove off the dealer lot than they did just a year ago, industry watchers report.
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“All signs of the industry’s health are positive right now,” said John Humphrey, senior vice president of the global automotive practice at J.D. Power and Associates, or JDPA. “Average transaction prices are up, incentives are stable, leasing is at a healthy level and newly redesigned models continue to make an impact on the marketplace.”
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Tags: auto incentives, auto news, auto sales, auto transaction prices, car news, car sales, february 2013 car sales, february car sales february auto sales, j.d. power, jo szczesny, power information network, thedetroitbureau
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Ford ups Focus EV lease incentives to over $10,000.
by Paul A. Eisenstein on Jan.24, 2013
Ford is offering more than $10,000 in incentives on the Focus EV.
The U.S. new car market finished 2012 with an unexpected sales surge and industry pundits predict demand will grow again this year. That may be great news for shareholders but not so much so for shoppers looking for a good deal.
Transaction prices – what the average new vehicle buyer actually pays after options and incentives are worked in – rose to a record high while those givebacks dipped sharply. But that doesn’t mean there aren’t some good deals out there, according to those who track the numbers on a daily basis.
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In fact, if you’re willing to opt for a product that might not be your first pick you could be in for some substantial savings. And there are some particularly good deals in select market niches. In some instances, you’ll find the bargains best when you’re willing to purchase the vehicle up-front. Other hot deals are available, however, on leases.
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Tags: Ford Focus EV, auto incentives, auto news, auto rebates, auto rebates.low-interest auto loans, auto sales, best new car deals, car news, car sales, cheap car loans, good auto deals, paul a. eisenstein, paul eisenstein, thedetroitbureau
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But that’s the good news, many believe.
by Paul A. Eisenstein on Jan.21, 2013
Chrysler will add shifts - but avoid investing in new plants - as the US market continues to recover.
It could be a big year for the U.S. auto industry. After an unexpectedly strong close to 2012, most analysts anticipate the market will grow by as much as another million units this year – even more if Washington lawmakers can come up with a long-term solution to the nation’s debt and taxes debate.
Yet, while 15.5 million vehicles would mark the strongest sales the industry has experienced since the start of the long recession, the bad news is that this would still be well short of the more than 17 million peak the industry experienced during the middle of the last decade.
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Or maybe that’s the good news, a number of automotive leaders suggest. Ironically, some argue, it was chasing the previous market record that got the industry into so much trouble, adding too much capacity and then being forced to rely on profit-gobbling incentives to keep all those plants working.
The 17.5 million sales peak set in 2005 was an “an artificial high,” contends Tom Libby, of data tracking service R.L. Polk.
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Tags: 2012 car sales, 2013 car sales, Carlos Ghosn, Mark Reuss, Sergio Marchionne, U.S. auto sales, auto bailout, auto incentives, auto news, car news, car sales, gm bailout, paul a. eisenstein, paul eisenstein, thedetroitbureau, us auto sales peak
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Incentives down, prices up.
by Joseph Szczesny on Jan.03, 2013
Toyota's Camry nabs the sales crown for 2012.
Automakers have closed the books on 2012 and appear to be carrying enough momentum to continue their recovery in the year ahead. That is likely to mean record profits for both Detroit and foreign manufacturers, according to industry experts – but it could mean fewer discounts and notably higher transaction prices for consumers.
While a few makers have yet to report their final numbers, December appears on track to have yielded a low double-digit gain for the U.S. auto industry, perhaps as much as 15% compared to the final month of 2011. That will likely mean that the past year, as a whole, was the industry’s best since 2006, just before the automotive market – and the economy as a whole – began sliding into recession.
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The annualized rate of sales in December came 15.3 million units basically the same as in November. Nonetheless, the year was a good one for the industry as most carmakers posted solid sales gains – and giving credence to recent forecasts that sales should reach the mid-15 million range for all of 2013.
Meanwhile, average transaction prices soared to an all-time record high last month of $31,228, according to data analyzed by TrueCar.com.
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Tags: Ford Sales, GM sales, auto incentives, auto news, auto sales, average transaction prices, car news, car sales, chrysler sales, december 2012 car sales, december auto sales, december car sales, joe szczesny, thedetroitbureau, toyota sales
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Incentives also increase.
by Paul A. Eisenstein on Dec.05, 2012
Hyundai boasted the lowest incentives -- and the lowest transaction prices -- last month.
If you bought a car in November odds are you paid more than you would have at almost any time in the past year. Transaction prices – what motorists actually spend after working in incentives and factory options – are at or near record levels.
That’s despite the fact that many manufacturers increased givebacks last month, hoping to keep sales momentum going. They’ve also been working with lenders to ensure that credit continues to become more readily available – though motorists have been stretching out loans and are now taking an average of 64 months to pay off a car purchase.
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“Industry average transaction prices climb once again with consumers’ continued appetite for highly contended vehicles,” said Jesse Toprak, Senior Analyst at the data tracking service TrueCar. “Today’s consumers value a nicely equipped vehicle as much as they do a low cost of ownership. Automakers are getting better at providing all the modern conveniences consumers come to expect for more of their models, resulting in higher overall prices hence improved profitability.”
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Tags: auto financing, auto incentives, auto loans, auto news, auto rebates, auto sales, auto transaction prices, car incentives, car loans, car news, car sales, november 2012 car sales, paul a. eisenstein, paul eisenstein, thedetroitbureau
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Pent-up demand, more credit work to industry’s advantage.
by Paul A. Eisenstein on Sep.04, 2012
The Passat helps VW deliver a 62% sales bump.
The analysts have been forecasting a downturn in the U.S. auto industry for months, and the dire forecasts have only grown worse as much of the rest of the economy has soured. But August sales once again showed there is unexpected life left in the American automotive market.
Pent-up demand and improved credit access helped boost August sales by an estimated 16% compared to year-earlier levels, with declining incentives and rising vehicle prices suggesting, if anything, that the market may still be building more steam.
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“We’re not seeing anything drastically changing at this point,” said Frank Trivieri, sales chief for Volkswagen of America, which reported a 62.5% increase for the month. “I haven’t seen anything to indicate (a) softening” of the market.
Some makers reported positively massive gains, including not only VW but Honda, up 59.5%, and Toyota which reported a 49.6% jump compared to August 2012.
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Tags: Ford Sales, GM sales, august 2012 car sales, auto incentives, auto news, auto sales, car news, car sales, hyundai sales, paul a. eisenstein, paul eisenstein, thedetroitbureau, toyota sales
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Pent-up demand, not givebacks, draw shoppers to showrooms.
by Paul A. Eisenstein on Sep.04, 2012
Hyundai's updated Genesis coupe helped the maker drop incentives and demand higher prices in August.
While a number of key automakers have yet to report their final numbers for August, there’s little doubt it was a strong month for the industry, likely bringing an overall sales increase of around 16%, year-over-year – a sharp contrast to the stuttering numbers from other sectors of the economy.
The August numbers are all the more impressive when considered in light of the fact that incentive spending continued to drop during the month – while transaction prices were up sharply compared to August 2011.
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“There’s still pent-up demand,” driving buyers back into showrooms, suggested Frank Trivieri, vice president of sales for Volkswagen of America, which reported a striking 62.5% year-over-year sales increase.
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Tags: August car sales, Sergio Marchionne, august 2012 car sales, august 2012 transaction prices, auto incentives, auto rebates, average transaction prices, car incentives, paul a. eisenstein, paul eisenstein, thedetroitbureau, truecar
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Mixed numbers raise both hopes and concerns.
by Joseph Szczesny on Aug.02, 2012
GM is hoping the new Cadillac ATS can help it rebuild some momentum.
Sales of new cars jumped 18% in July despite growing economic certainty. But the numbers also reflected shifts in the market dynamics that had prevailed over the past 12 months as Honda and Toyota reported big sales increases, while General Motors and Ford Motor reported their sales dropped last month and other carmakers began to show signs of distress.
It was a month of conflicting trends, some reports suggesting makers were, on the whole, able to command their highest transaction prices while continuing a year-long cutback in incentives. But there are indications that pattern may not be able to continue much longer.
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Fast-growing South Korean carmakers also saw their sales pace slow as both Hyundai and Kia reported only modest increases for July and the boom in luxury car sales seems to be winding down as BMW, Mercedes-Benz chalked up on modest gains, while Porsche sales slipped 1%.
Industry analysts will be watching closely, in the weeks to come, to see if the market can maintain the momentum it had shown during the first half of the year as sales were unchanged from June with a seasonally adjusted annual sales rate, or SAAR, topping out at 14 million units
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Tags: Ford Sales, GM sales, Nissan sales, VW sales, auto incentives, auto news, auto pricing, auto sales, car prices, car sales, chrysler sales, joe szczesny, july 2012 car sales, thedetroitbureau, us car sales
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