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Incentives represented 11% of average transaction prices in June

Incentives continue march higher as U.S. sales stall


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Automakers are steadily increasing incentive spending, as U.S. light-vehicle sales continue to slow heading into the second half of 2017.

ALG reports automakers spent an average of $3,550 per new vehicle sold in June, up 9.7 percent from a year ago. The average discount is expected to account for 10.8 percent of the average transaction price of vehicles sold last month — marking the 11th time in the past year that incentive spending has accounted for 10 percent or more of the sale price, according to industry forecasters.

“Despite a significant increase in the number of incentive programs going into the long July 4th holiday, many automakers held down incentives for much of June as they were getting inventory levels under control,” said Brad Korner, general manager of rates and incentives at Cox Automotive. “One trend we’re seeing is that automakers are committing incentive money directly to dealers. While it is not guaranteed cash for buyers, it should help dealers create the best deal scenarios for individual buyers.”

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