By on July 2, 2015

Insane People at the Stock Photo Dealership

The Detroit Bureau is reporting that even though June was a record sales month for many automakers, many of those sales were partly fueled with record incentives from the manufacturer.

Buyers could get up to $8,000 knocked of the price of a Kia K900 or up to $7,000 off of Ford hybrids or electric cars — even $8,000 for the 2015 Ford C-Max Energi.

Despite the higher-than-normal incentives, the Detroit Bureau reported that the Average Transaction Price for a new car in June was $31,848, up around 1 percent over last year.

Two automakers increased spending on their incentives by more than 30 percent over the same time last year — Nissan and Hyundai. As a percentage of incentives offered to ATP, Kia (11.7 percent), Hyundai (10.5 percent), Nissan (10.3 percent), GM (10.2 percent) and FCA (10.2 percent) were the biggest spenders last month.

As expected, many of the heavily incentivized cars were slow-moving models or cars with narrow appeal, which automakers could immediately offset by selling massive amounts of huge crossovers with equally huge margins.

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33 Comments on “Record Sales Pace Partially Fueled by Record Incentives...”


  • avatar
    hreardon

    Mrs. Hreardon ended up a swanky new JGC Altitude thanks to some ridiculous incentives totaling around $6500 two weeks ago. Love the truck.

    • 0 avatar

      I wasn’t aware FCA would even *offer* incentives on its best-selling vehicle like that. Congrats.

      • 0 avatar
        hreardon

        Well, let me be clear: between incentives and negotiations we dropped $6500 off of sticker. Incentive for June, incentive for educators, incentive for Jeep convert, etc.

        • 0 avatar
          bball40dtw

          Incentives for being a human adult with a driver’s license and pulse?

          • 0 avatar

            Fair point. As Mister DeMuro said: “…Chrysler, who would finance a stray dog as long as it doesn’t pee in the showroom.”

          • 0 avatar
            matador

            You’re thinking of Mitsubishi.

          • 0 avatar
            bball40dtw

            Kyree-

            I was skeptical of Chrysler’s deals on the 300, JGC, etc. The dealer by my work really is leasing 300s with AWD for $268/month with $0 down. My neighbor just replaced his Charger R/T AWD (which they no longer make) with a 300S with AWD and the V8 for less than what he was leasing his Charger for.

      • 0 avatar
        DeadWeight

        It’s entirely possible to get into a 39k MSRP Grand Cherokee for 31k and a few hundreds now, plus TTL.

        That’s about $1,900 less than on an lesser equipped version I was dealing on back in 2012.

        I know people who’ve gotten 14k off MSRP on a Silverado (45k MSRP) and 7k off a 39k 2015 Hyundai Genesis 3.8 in just the last two weeks, and neither one had to bargain very hard or long.

  • avatar

    I love you all dearly, I do, but if I see that stock image—or a variant thereof—*one* more time…

    $8,000 off of a C-Max Energi would make it hard not to at least give it some consideration.

    Oh, and welcome to TTAC, Aaron, if I didn’t do it already :)

    • 0 avatar
      bball40dtw

      It’s $8007 off on a lease. $2500 on a buy. On the buy, you take care of the $4007 tax credit yourself.

      • 0 avatar

        I see. There are only two reasons I’d lease a car:

        1) It’s a dirt cheap mode of transportation for a few years (and it still needs to have some level of allure; I don’t want a Jetta S with a 5-speed)

        2) It’s something I wouldn’t want to own long-term (I would, for example, lease a BMW X5, and then wash my hands of it and its impending nightmares after 36 mos.)

        The C-Max, I’m not sure about. It’s certainly something I wouldn’t be afraid to own for several years…but the lease may be really inexpensive if you consider the plug-in hybrid factor. If nothing else, I already have a good all-around car, but again, I’d look at a C-Max if I needed a commuter with plenty of space. Even though the C-Max is kind of funny-looking (and even though they didn’t give us the Grand C-Max that I really wanted), I like it better than the Escape, which has too many misplaced creases and fake vents.

        • 0 avatar
          bball40dtw

          As you know, I own a C-Max and really like it. I keep trying to justify replacing it (it’s the most boring car I’ve owned in awhile), but my wallet won’t let me.

          I’m getting 40+ MPG, it’ll be paid off next year, I already have winter tires/wheels for it, I just replaced the tires with longer life all-seasons, the brakes have almost zero wear, there is no scheduled maintenance besides tire rotations and oil changes for another 50K miles, it’s great for small families (1-2 kids), and I enjoy it as a commuter.

          It’s boring compared to the GTI and Focus ST preceded it, but it’s a better car to own on a daily basis. My GTI felt tired at 45K miles (creaked and groaned like an old man). My Focus ST was better, but it lacked space in the trunk and rear seat. I hated driving it with an infant. It was also a car that didn’t drive calmly. It was never a leisurely drive to work.

          • 0 avatar
            jberger

            I can’t believe how cheap the used C-max energi models are, I’m seeing 10-12K models all over the Southeast with a nice level of equipment.

            Is there some hidden reliability issue or something that is killing resale? Or are the incentives so high now that it’s pushing down the values on the rest of them.

          • 0 avatar
            bball40dtw

            The C-Max had a PR issue with it’s fuel efficiency. I would expect the power train to be reliable. It’s very similar to the system that is on Escape hybrids doing 200k+ miles as taxis.

            It also isn’t a pretty and no one wants stumpy hybrid hatchbacks right now.

        • 0 avatar
          GermanReliabilityMyth

          I was contemplating the part of your comment regarding fake vents on the Escape. At this point, their overuse seems to have spread through automotive design school like the flu. I can’t help but wonder if some accountant realized that plastic inserts, and the cost to install them on the assembly floor, saves money by using less sheet metal.

    • 0 avatar
      Aaron Cole

      Thank you. I selected the stock image solely because of its absurdity. Stock photos are basically the worst thing of all history.

  • avatar
    bball40dtw

    Their numbers are misleading. The C-Max Energi has an $8007 incentive on a lease. This is because you don’t get the tax credit when you lease. They use it as a capitalized cost reduction.

    So for the C-Max Energi there is $4007 in tax credits, and $4000 in incentives. That’s for a lease only though. On a buy it’s $2500 and 0% for 60 months.

    • 0 avatar
      whynotaztec

      I looked into this too it just defies logic in some cases. I would love a hybrid or ev for my 60 mile r/t commute but the lease mileage allowance never fits. So you lease a super fuel efficient vehicle but then you don’t put a lot of miles on it. Either way I guess you don’t spend a lot on gas!

  • avatar
    Detroit-Iron

    I don’t know what incentives they used to get there, but I just picked up a van for a good bit less than TrueCar’s best price.

  • avatar
    NotFast

    I like the goofy stock images. And I especially like this one – no salesman is that funny, so she must be having a seizure.

  • avatar
    vvk

    Yeah, I leased a 2015 Traverse in January with over $11k in discounts. The monthly payment is under $160 with $0 due at signing. Golden age…

    Really like it, BTW… Wish it came with a manual gearbox but… nobody’s perfect.

  • avatar
    TW5

    Salesman: Here’s your key, sir. Welcome to the BMW family. You’re ready for the boardroom.

    Her: looooooooooool I’m buying this for him as a birthday gift.

  • avatar
    Chocolatedeath

    Truecar just aint the same since they got took to the wood shed a few years back. I used to find that the deals were in the 5-7 grand off range but now its no more than about 3-4k for every car. I know that Caddie has a bunch of money on the hood of the CTS per DW and Truecar only says 4 grand. I like them better when they weren’t bullied by the dealers.

    • 0 avatar
      DeadWeight

      If you can’t get a minimum of 10k off MSRP on an ATS (it should be more like 14k for high trim models) and a minimum of 16k off MSRP on a CTS (more like 21k off high trim models), you’re not bargaining hard enough with enough dealerships.

      I’m the one who mentioned almost everyone is massively dealing right now (to keep factory utilization high during what is a period of deceleration in the economy), and when I told the tale of a particular 35k MSRP vehicle leasing for $207/month with $0 down and was challenged on it, I posted the ad (a current one).

      I fully expect incentives to stack higher and wider heading into the end of year, too. Much pent up demand has been satisfied, and incentives will have to be insane to keep the buyer leasing/buying and factories running.

  • avatar

    Late last month I leased a leftover 2014 i3.

    $ 7500 BMWNA incentive (takes place of federal incentive)
    4955 Dealer discount
    1000 BMW “Drive for Team USA” incentive
    3000 Connecticut State CHEAPR EV incentive
    500 BMW Car Club of America kickback.
    ——-
    $16955 off of a 49550 sticker (~34%)

    I am loving the car. It is comfortable, fast, and in a way it is more fun than my Z4 35is. I can charge it for free at work.

    I’d love it even if my lease payment weren’t $134 a month with just $674 (plus security deposits) down.

    But I love it even more because of what a deal it is.

  • avatar
    SCE to AUX

    Kia is still offering $5k off the Optima Hybrid, which is the deal I got last year on a leftover 2013. $20k for a beautiful gas-sipper – same price as a penalty box.

    Can’t complain about 25% off MSRP.


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