Declining incentives

Edmunds.com reports that the average automaker incentive in the U.S. was $2,542 per vehicle sold in December 2009, down $167, or 6.2%, from November 2009, and down $320, or 11.2%, from December 2008.

“In December only about 24 percent of new cars sold were from the 2009 model year, so the average incentive expenditure is relatively low compared to November and last December when the old model year vehicles made up closer to half of the new car sales," Jessica Caldwell, director of industry analysis for Edmunds.com, noted in a statement. "If we only look at 2009 model year vehicles, where the real deals were, automakers spent an average of $4,317 per vehicle sold in December.”

KEY DECEMBER INCENTIVE DATA
• Combined incentives spending for domestic manufacturers averaged $3,425 per vehicle sold in December 2009, down from $3,684 in November 2009.

• From November 2009 to December 2009, European automakers decreased incentives spending by $136 to $3,063 per vehicle sold; Japanese automakers decreased incentives spending by $80 to $1,564 per vehicle sold; and Korean automakers decreased incentives spending by $147 to $1,866 per vehicle sold.

• Chrysler Group (Chrysler, Dodge, Jeep)
December 2009: $2,552
December 2008: $3,681

• Ford (Ford, Lincoln, Mercury, Volvo)
December 2009: $2,994
December 2008: $3,985

• General Motors (Buick, Cadillac, Chevrolet, GMC, Hummer, Pontiac, Saab, Saturn)
December 2009: $4,077
December 2008: $3,554

• In December 2009, the industry’s aggregate incentive spending is estimated to have totaled approximately $2.57 billion, up 26.9% from November 2009. Chrysler, Ford and General Motors spent an aggregate of $1.6 billion, or 60.5% of the total; Japanese manufacturers spent $621 million, or 24.1%; European manufacturers spent $279 million, or 10.8%; and Korean manufacturers spent $118 million, or 4.6%.

• Among vehicle segments, premium luxury cars had the highest average incentives, $4,838 per vehicle sold, followed by large SUV at $4,831. Subcompact cars had the lowest average incentives per vehicle sold, $1,047, followed by compact cars at $1,491.

• Comparing all brands, in December Scion spent the least, $361 followed by smart at $413 per vehicle sold. At the other end of the spectrum, Saturn spent the most, $5,925, followed by Pontiac at $5,882 per vehicle sold.