Detroit, MI — Rebates and incentives, automakers’ largest expense after materials, continued to play a role in February auto sales. 19 of the top 20 selling models last month came with customer incentives as large as $3,000, according to a new study released today by Buycentives.
“Clearly, the presence of about $2.5 billion in incentive spending in February helped propel the market to its highest level in four years”, said David Goldschmidt, President and Founder of Buycentives, a developer of real-time, dynamic incentive technology for car companies. “But what many don’t realize is that nearly all of the top sellers were also “on sale”, and these price reductions helped automakers maintain sales momentum or chase market share”.
Typically, slow sellers and aged models benefit the most from customer and dealer cash rebates, below market interest rates and lease deals. But there are exceptions. Ford’s new, fuel-efficient and critically-acclaimed 2012 Focus was the seventh best seller, achieved in part by $1,000 cash and 0% financing deals from the automaker. The Buycentives study found that all of February’s top 20 sellers came with customer incentives, except the 2012 Honda CR-V. The CR-V has a lease incentive for March.
“Car companies use incentives at both ends of the market,” Goldschmidt said. “Shoppers should know that it’s not just the laggards that receive great incentives to produce sales. Some of the more desirable and competitive entries today have incentives, such as the Nissan Altima, Chevrolet Equinox and Hyundai Sonata.
“We’re happy to see overall incentive spending trend downward, averaging only about $2,200 per vehicle last month. That’s a healthy sign as pent-up demand returns to the market and showrooms are refreshed with new models. But vehicles don’t become market leaders solely on merit, so some great offers are out there.”
Buycentives is the leading provider of real-time, data-driven incentive technology to the automotive industry. Using patent pending technology, the company is the first to offer personalized, Dynamic Incentives™ that motivate auto shoppers with the right offer at the right time. For more information visit http://www.buycentives.com, email: info(at)buycentives(dot)com, or call 734-926-9219.