Tag: Incentives

By on July 11, 2017

nissan leaf charging electric car

California wants to fund more generous rebates for electric vehicle buyers as part of a massive agenda to support the adoption of zero-emission vehicles. In addition to federal incentives, the state has its own rebate program and has made plans to add additional state-sponsored tax breaks for EV buyers.

However, according to the Center for Sustainable Energy, California’s Clean Vehicle Rebate program has almost run out of funding — for a second time — after Governor Jerry Brown neglected to include it in the state budget.

As a result, the program can no longer offer rebates to purchasers of zero-emission vehicles and has placed those who made a purchase after June 30th on a refund waiting list. It’s bad news for anyone in California who wanted to by an electric car. Well, unless you’re poor, because the State of California really wants to convince low-income households to buy electric for some reason.  (Read More…)

By on July 6, 2017

2017 Subaru Impreza Indiana Assembly Plant - Image: SubaruMaybe, we told you in early May, you’ll soon be able to get a deal on a Subaru Outback.

As new vehicle demand gradually shrinks in America, every automaker wants to grow their market share in order to maintain steady sales output. “Sure, there are fewer buyers,” the automaker says, “but we’ll grab more of them.”

Decreased demand has a tendency to increase competitiveness. Not surprisingly, Subaru anticipated the need to more dramatically increase incentives on the  least-incentivized cars in America as 2017 progressed. Even an in-demand automaker such as Subaru is going to struggle when rival automakers are routinely dropping prices by more than 10 percent.

Thus, according to ALG, Subaru’s average discount per vehicle shot up 63 percent, year-over-year, in June 2017. (Read More…)

By on July 5, 2017

2017 Chevrolet Silverado High Country towing - Image: ChevroletMarch 2017 marked just the third occasion in three years in which Fiat Chrysler Automobiles’ Ram P/U line outsold the Chevrolet Silverado in the United States.

One month later, in April, Ram did it again.

Then in May 2017, Ram made it a threepeat, outselling the traditional No. 2 pickup truck in America by more than 1,000 units. By the end of May, the Silverado was only 5,055 sales ahead of the Ram on year-to-date terms, a narrow gap which served to highlight the possibility that the Ram could outsell the Silverado for the first time ever in calendar year 2017.

But June 2017 marked an end to Ram’s party, at least for the time being. General Motors reported 50,515 Chevrolet Silverado sales in June, a 2-percent year-over-year uptick and 7,442 more sales than FCA’s Ram truck lineup managed.

How did GM manage to end the trend? By earning less money per truck, naturally. (Read More…)

By on June 28, 2017

nissan leaf charging electric car

Federal tax credits for electric vehicles won’t last forever, especially under the Trump administration. While it’s difficult to quantify exactly how many people saw the $7,500 rebate as the deciding factor to “go green,” there is little doubt that it factored into the final purchasing choice of some buyers.

California has made the promotion of zero-emission vehicles a matter of great concern. With General Motors, Nissan, and Tesla all gradually approaching the 200,000-unit quota for vehicles eligible for the tax rebate, the state doesn’t want to see buyers lose purchasing incentives prematurely. With that, California is considering a bill that would provide discounts to EV shoppers at the time of purchase, essentially reducing the sticker price before the car even leaves the lot.  (Read More…)

By on June 23, 2017

2017 Alfa Romeo Giulia Ti - Image: FCA

The Alfa Romeo brand is an odd duck, and not just because of its “exotic” status or its on-again, off-again history in the United States. Italian car fans love it. Design enthusiasts drool over it. Performance enthusiasts and sports sedan traditionalists pine for a finely balanced, twin-turbocharged Giulia Quadrifoglio. Concerned friends warn them that other, perhaps safer options exist. Money lenders with soft hearts try to raise concerns about reliability.

Love it or fear it, Fiat Chrysler Automobiles has high hopes for the Alfa brand in the U.S. but, unlike FCA boss Sergio Marchionne, top American brass are hesitant to put a number to their hopes. For now, Alfa remains a brand without numerical expectations. And that’s the reason you won’t find incentives heaped on Alfa models in the near future. (Read More…)

By on June 20, 2017

2017 Chevrolet Bolt EV, Image: GM

The State of Texas arouses visions of oil-rich tycoons with dysfunctional families, a fierce adherence to individual liberties, and vast quantities of trucks bearing the names High Country, Longhorn, Laramie, and King Ranch. While agriculture and industry play a major role in the state’s economy, not every vehicle in the Lone Star State’s fleet relies on gas or diesel.

With numerous major urban centres and a good economy, electric vehicles have made inroads in Texas over the past several years. Soon, a resurrected incentive could light a fire under EV sales. Well, except for one brand. (Read More…)

By on June 7, 2017

2017 Toyota Camry SE - Image: Toyota“Stepping up to a midsize is basically a no-brainer for buyers at this point,” CarsDirect’s senior price analyst Alex Bernstein tells TTAC.

With demand for midsize sedans drying up, deals on aging models are warming up.

Now in its sixth model year, the 2017 Volkswagen Passat 1.8T S — the entry-level Passat — is available in June for a 36-month lease at $189 per month and $1,999 due at signing.

The 2017 Honda Accord, a new version of which is due later this year, is also available in June in basic LX trim on the same terms.

Meanwhile, the mid-grade 2017 Toyota Camry SE 2.5, set to be replaced in the coming months by an all-new model, is likewise available in June for $189 per month with $1,999 down over 36 months.

“This is about as cheap as lease deals have ever been on these midsize sedans,” Bernstein says. But it actually gets even cheaper, marginally cheaper, according to CarsDirect’s examination of 500 lease deals. (Read More…)

By on June 5, 2017

2017 Honda Civic hatchback & 1977 Honda Civic hatchback, Image: Honda CanadaCanadian auto sales surged to record levels in May 2017, surpassing the previous monthly record from April of last year by an 8-percent margin and topping 200,000 units for just the second time in history.

You know it’s going well when, in a virulently anti-car market, passenger car sales increase, year-over-year. And in the fifth month of 2017, car sales did indeed improve, growing 3 percent beyond May 2016 levels.

You know it’s truly going well when, in a market that had already seen pickup truck market share climb to 20 percent, pickup truck sales jumped 38 percent to form 22 percent of the industry’s volume.

And you know it’s going exceptionally well when, in the span of just one month, the relatively small Canadian market purchases and leases 217,000 new vehicles at significantly higher prices than in the past. (Read More…)

By on May 30, 2017

2016_nissan_leaf_01

The Nissan Leaf, which burst onto the scene in late 2010 as one of the first mass-market electric vehicles, hasn’t changed much since its introduction. Until very recently, driving range sat well below the three-figure mark. And as its technological edge dulled, the Leaf gained a reputation as one of the fastest-depreciating vehicles on the market.

If you find yourself living in a certain jurisdiction, Nissan and a mid-level government has now made a purchase of a used Leaf far more attractive than it once was. Message to the U.S. and the rest of Canada: Quebec wants your old Leafs. (Read More…)

By on May 12, 2017

2017 Subaru Outback - Image: Subaru

Although Subaru is selling more new vehicles than ever before, particularly in North America, the automaker’s run of record profits came to end in the fiscal year ending March 31, 2017. Subaru made money, no doubt, but Subaru’s operating profit was down 27 percent compared with the prior year.

Subaru’s revenue grew 3 percent while global volume rose 11 percent to more than 1 million vehicles, according to Automotive News. That’s the kind of information that matters to investors.

As for consumers, it’s the information from Subaru CEO Yasuyuki Yoshinaga that matters most. Saying the U.S. market has peaked, Yasuyuki Yoshinaga claims, “The market environment has increasingly become tougher.” In a tougher market, Subaru’s largest market, an automaker must either give way or make way.

Subaru’s decision? “We will carefully examine the situation and will take the necessary steps to maintain our sales, including incentives,” Yoshinaga says.

You heard right. Subaru, notorious for limited supply and limited scope for deal-making, might just offer you a bit of a discount on your next Outback or Forester. (Read More…)

By on May 11, 2017

2016 Chevrolet Impala Midnight Edition - Image: Chevrolet

We knew General Motors’ strategy for the tenth-generation Chevrolet Impala would be different when the big sedan was launched in 2013. No longer intended to be the fleet queen and a hugely discounted showroom sedan, the tenth-gen Impala moved upmarket.

Consequently, sales decreased, and did so in dramatic fashion. The Impala’s U.S. volume in 2014 was down by more than half compared with 2007 output. Sales continued to fall, with the Impala’s 2016 calendar year result of 97,006 U.S. sales representing the sixth consecutive year of decline.

The Impala’s numbers are getting lower. Much lower. After averaging more than 8,000 monthly Impala sales in 2016 and nearly 10,000 per month as recently as 2015, Impala volume has cratered in early 2017. Only 3,213 Impalas were sold in the United States in April 2017, down 73 percent compared with the Impala’s April average over the last five years.

But don’t assume the scarcity of Impala sales will translate to an abundance of deals at your local Chevrolet dealer. Impalas are thin on the ground, and GM isn’t playing games with incentives. (Read More…)

By on April 19, 2017

tdiengine

Earlier this year, Volkswagen received the necessary approvals to begin fixing vehicles equipped with 2.0-liter diesel engines that had been modified to circumvent emissions testing. While older VW and Audi models with TDI powerplants continued amassing on vacant lots via its mandatory buyback program, 2015 MY units have begun undergoing engine control module alterations.

Those vehicles are now back on sale and Volkswagen is offering them with a considerable discount attached, though the manufacturer hasn’t made a peep about the deal. Instead, the automaker is leaving it to dealers to break the news — or not. (Read More…)

By on April 15, 2017

2016_nissan_leaf_12

How do you keep a very long-in-the-tooth model alive when competitors have bypassed it in terms of technology and practicality? Offer sweet deals, obviously.

Nissan’s venerable Leaf, which saw its first U.S. sales in late 2010 and still hasn’t confirmed a North American successor, needs all the help it can get. Not only are electric cars a tough sell in America, but the Leaf faces a growing crop of rivals that top its paltry driving range by roughly 2:1.

Nissan wants to know: would you feel differently if it was much, much cheaper? (Read More…)

By on April 13, 2017

dealership

Every industry analyst is beginning to sing the same tune. Despite things looking good now, the worm is about to turn. Global sales look poised to remain strong this year but the market has peaked and sales should persist on a graph as a flat line. Next year could be a different story, however, and there’s much apprehension surrounding lengthening loan terms and the upsurge of subprime lessees.

Rising incentives are also causing alarm; J.D. Power and Associates expects the average incentive per new unit to top $4,000 in 2017. While that tactic may get people into dealerships now, it might also harm long-term profitability as the automotive industry swings toward leaner times.   (Read More…)

By on April 3, 2017

2017 Ford Taurus

The Blue Oval is dolling out Big Green to dealers in an attempt to clear stubbornly unsold 2016 models from its inventory.

The plan could see Ford dealers collect bonuses of up to $6,000 per vehicle, a new report states. As you might have already guessed, the languishing models are certainly not of the truck, SUV or crossover variety. (Read More…)

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