Take Me to Toyotathon: Vehicle Incentives Slowly Returning
We’re coming out of a few lean years in the auto industry. Automakers, struggling to keep pace with demand due to supply chain issues and a global pandemic, slashed incentives and even increased prices in some cases. Things are starting to calm down, at least a little, and the deals are slowly returning.
USA Today reported that incentives rebounded to 2.8 percent of a vehicle’s average transaction in January, far less than in 2021 but an improvement from the end of 2022. Incentives grew at different rates depending on the segment, with ultra-popular vehicles like compact SUVs seeing smaller gains than others, such as midsize cars, which saw more significant increases.
Electric vehicles, which are growing quickly in popularity, are among the least discounted cars, with incentives of just 2 percent. It also appears that automakers are having no trouble selling minivans, as they have even fewer incentives, at just one percent.
USA Today spoke with Brian Moody, Autotrader’s executive editor, who said buyers might need to shop regionally to find the best deals. If you’re unhappy with your local dealer’s offerings, check stores in other towns or states. You can also look at less popular brands if you’re willing to flex on your desired make or model. Moody pointed out that shopping at the end of the month or year is an excellent way to get deals, and automakers frequently offer incentives around holidays.
[Image: Jonathon Weiss via Shutterstock]
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Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.
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