Carmageddon - Increasing Incentives on Lower Sales Volume

[Dr. Detroit]

http://wolfstreet.com/2017/04/04/carmaggedon-not-yet-declining-auto-sales-record-incentives/

Total new vehicle sales in March fell 1.6% year-over-year to 1.556 million cars and light trucks, according to Autodata, and are now down 1.5% year-to-date, with truck sales rising 5.2% and car sales plunging 10.6%.

This wouldn’t be so bad – just an “unexpected” sales decline – if automakers had not shelled out $3,768 in incentives per new vehicle sold, the highest ever for any March, according to J.D. Power. This would be about 10.4% of suggested retail price. The prior record for March occurred in 2009 as the industry was collapsing.

We're in the market for two newer cars and been watching the incentive wars play out these past 6-months. Watching cars 1-2yrs off lease come through the auctions with 40% or more off MSRP and some new cars 30% or more off sticker.

We're sitting on the sidelines with cash in hand - we bought in late 2009 and picked up a $53K car 6-months old for 48% off sticker.

 

[agent00f]

http://wolfstreet.com/2017/04/04/carmaggedon-not-yet-declining-auto-sales-record-incentives/


We're in the market for two newer cars and been watching the incentive wars play out these past 6-months. Watching cars 1-2yrs off lease come through the auctions with 40% or more off MSRP and some new cars 30% or more off sticker.

We're sitting on the sidelines with cash in hand - we bought in late 2009 and picked up a $53K car 6-months old for 48% off sticker.

Strange optimism for an economy that rivals 2009.

 

[Ns1]

I'm debating whether or not to pull the trigger on an e-golf...2.5k CA, 7.5k Fed, 4k VW, + whatever the dealer wants to give to get rid of old stock...

Also seeing if incentives on trucks/cargo vans go anywhere.