Study Points To Lowered Truck Incentives

[Gorehamj]

John Goreham
Contributing Writer, GM-Trucks.com
12-5-2018

The hard-working research team over at iSeeCars has completed a new study. This new one doesn't use the easiest to understand metrics, but the conclusion is pretty clear. Among all vehicles being promoted by manufacturers this holiday season, trucks are among those with the lowest incentives. What the group looked for this time were models that had the highest number of advertised deals that took 5% or more off of the sale price of the vehicle. In other words, how many deals are out there, not necessarily the best deal with the single most savings. Many deals are regional and iSeeCars included used cars in this analysis of over 2.4 million sales transactions. 

 

The average percentage of listings that offer a deal that takes 5% or more off the price of a vehicle this time of year is 40.5%. That means about 4 out of ten vehicles are already being discounted before a shopper arrives. iSeeCars looked at how a given model varied from that average. In other words, is a model more or less likely to be a model with a deal.

The top model for deals is the outgoing BMW 3 Series. The lucky auto writers who cover that model are on planes as we type this story headed to the new 3 Series launch. BMW and used car dealers is trying to get rid of the older series ahead of the new. The Mercedes E-Class and the Audi A4 are also being heavily advertised with deals. “The growth in popularity of auto leases in recent years has led to an influx of these often-leased luxury vehicles in the used car marketplace after their lease terms end,” said Phong Ly XCEO of iSeeCars.

 

Among all types of vehicles, trucks have the least number of deals. The Silverado is among the vehicles with the lowest number of deals overall. If you think about the state of the truck market now, this seems to make sense. The Ram, Silverado, and Sierra are all new for this season. 

 

The full study can be found here.

[pronstar]

Seems like a very difficult way to track incentives...Automotive News an many others already track incentives.

 

And BMW ALWAYS pushes incentives at year end. It’s the inevitable race for the “luxury sales crown” that happens with BMW, Mercedes-Benz and Lexus.

 

This literally happens every year.

 

But overall, incentive spend for the industry has dropped, average MSRPs are up (largely due to cheap cars falling out of favor), interest rates are up, and we can expect to see an overall sales slowdown any day now...analysts are a bit stumped why we haven’t seen it yet.

 

 

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[Gorehamj]

Yeah, it was hard to get my brain around. I did find it interesting that the trucks were less often discounted though.  I saw a $12,500 discount on 2018 Silverado advert immediately after I posted this.  

[pronstar]

It’s goofy because the criteria is “% More Deals than Average”

Full size pickups lead the industry in total incentives, but because everyone takes advantage of heavily discounted trucks, the average is quite a high number, even though they’re ranked low in the study.

Very odd study for sure.


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[dynoray]

i have to say i do agree about not much discounts/incentives on trucks in general.   a good friend of mine has been looking for a Silverado 1500 crew cab for a while now,he's bounced back and forth between new and used.  prices are high,and i can tell you one thing from all this.  they want to sell you a double cab Silverado much faster than a crew cab.    all our local dealers are flooded with double cabs.    also, im sure because the interest rates are high,that doesnt help either.

[Nargg]

Not too much of a shock after a new release year.  Happens all the time.  That and Toyota is full of themselves, and rarely give good discounts making them the worst deal you can get.  Toyota is such a bad company.