Tag: Incentives

By on June 11, 2019

2019 Chevrolet Bolt EV - Image: Chevrolet

If you’re stinking rich, few things stand in the way of any purchase. For plebs consumers of lesser means, pocketbook considerations factor much more heavily into all purchases. You author, by the way, feels pretty good about stockpiling discount meat in his freezer.

When it comes to electric vehicles, limited range and higher sticker prices serve as roadblocks to widespread consumer adoption, regardless of passionate lectures from politicians and online people. There’s progress being made on both issues, but spiffing new green rides remains a go-to method of stimulating sales. A pile of someone else’s cash on the hood goes a long way to sealing a deal.

In Canada, the U.S., and other developed nations, that EV cash comes from your friends and neighbors, not the manufacturer. And if Canadian data from May shows anything, it’s that the appearance of a modest rebate does little to get buyers in the mood to go green. Go big or go home? (Read More…)

By on June 4, 2019

2019 Ram 1500 eTorque

Running a car company is hard, in case you haven’t noticed. It gets even more difficult when various and sundry world events conspire to create a jittery public or wonky cost structures. Toss in a pinch of interest rate paranoia and you’ve the perfect recipe for a very challenging industry.

Last month, sales of light vehicles in America was roughly flat compared to the same time period one year ago. This would normally not be cause for much celebration but, against a backdrop of a disastrous April, it is almost worth breaking out a case of the good stuff.

(Read More…)

By on May 28, 2019

2018 Accord Sport 2.0-Liter Turbo - Image: Honda

May isn’t shaping up to be a sales winner for automakers doing business in the United States. Like past months in the current calendar, volume is predicted to decline, year over year, with the annual tally for 2019 expected to fall for the first time in years.

That’s according to a joint report from LMC Automotive and J.D. Power. Backing up the claims is a reversal of the recent trend of declining incentive spending, plus the fact that new cars are spending an increasing number of days sitting on lots. The most since the recession, in fact. (Read More…)

By on May 22, 2019

Image: FCA

Detroit City Council wrapped up a lengthy day of voting and approvals Tuesday, paving the way for a $2.5 billion Fiat Chrysler investment in two east-side assembly plants.

Part of the deal involves a complex series of land swaps benefitting both FCA and the land-rich Moroun family, plus a raft of tax incentives bound for the automaker. It’s a good thing FCA didn’t target its investment at New York City. (Read More…)

By on May 9, 2019

Image: Nissan

Pick your jaw up off the floor. As automakers struggle to offer electric vehicles deemed “affordable” by the motoring public, those buyers aren’t exactly swamping dealers with requests for EVs.

Even in the Europe Union, members of which punish drivers of fossil fuel-powered vehicles with high taxes, EVs amounted to just 2 percent of new vehicles registered last year. And yet the EU plans to drastically cut down on greenhouse gas emissions in the coming years.

New data from the European Automobile Manufacturers’ Association (ACEA) shows that the EU’s green dreams will be hard to realize without some sort of massive incentive for the purchase of electric vehicles, as right now those vehicles are only marginally popular in extremely wealthy countries. The EV “people’s car” is still a dream. (Read More…)

By on May 8, 2019

Image: Tim Healey/TTAC

You may have read a first drive review of Volkswagen’s new flagship, the Arteon, earlier today, but you probably didn’t know the automaker is already offering discounts on the liftback sedan.

We’ve spoken of the difficulties VW faces in launching a large car in a crossover-hungry market; the addition of available all-wheel drive and a carefully disguised rear hatch doesn’t take away from the fact the Arteon is *not* an Atlas. Maybe a dealer cash incentive will help move this unfamiliar metal. (Read More…)

By on May 1, 2019

Tesla Model 3, Image: Tesla

Forgive this writer for channeling Jonathan Pryce. Brush up on your secret handshake, too, as Tesla has a new version of the Model 3 customers can’t order online.

It’s a model that stands to become even more of a ghost than the U.S.-market Model 3 Standard Range, which disappeared from the company’s website after being on sale just a few days. American customers don’t apply here, as this cynical model’s sole purpose is to undercut a government EV incentive program’s price cutoff by a single dollar. A dollar, it should be said, that’s worth about 75 U.S. cents.

Who’s excited about 93 miles of range? (Read More…)

By on April 16, 2019

All-new 2018 Jeep® Wrangler Rubicon

Studies have shown that purchasing a new Jeep Wrangler is almost as stable an investment as buying gold. In terms of retaining value, the Wrangler is king, boasting a rate of depreciation that undercuts the industry average by half.

With this in mind, it’s not common to see people shopping around, sniffing out boffo bargains on hard-to-sell Wranglers polluting local dealer lots. It simply isn’t a thing. If you’re in the market for one, however, now may be a good time to start searching. (Read More…)

By on April 8, 2019

U.S. light-vehicle dealers reported an operating loss for the first time since the National Automobile Dealers Association (NADA) began collecting data in 2009. While everyone continues reporting pretax net profits, concerns are beginning to swell around their dependency on factory incentives, which are not included in operating tabulations.

NADA’s analysis of 2019’s first-quarter auto sales shows that incentive spending is down compared to the same period a year ago. The group expects above-average discipline from automakers in terms of incentive spending throughout the year. According to J.D. Power, average incentive spending per unit was down $119 to $3,821 through March 2019 — with the brunt of that going toward trucks. However, if sales remain low, spending may creep back up to help clear out languishing inventories.  (Read More…)

By on April 4, 2019

A piece you’ll see later this morning may have something to do with today’s topic. We’re talking handouts, incentives, rebates, discounts, credits — anything that can ease the financial burden of buying a new vehicle.

Specifically, that class of vehicle few people want to buy (and frankly, a class of vehicle more than a few people would rather not read about): Electric cars.

As Tesla and GM buyers face a once-juicy tax credit that’s now pared in half, and as other automakers stare down the barrel of a reduced federal incentive, we have to ask: what would it take, price-wise, to get you into one of them? (Read More…)

By on March 29, 2019

2017 Chevrolet Bolt - Image: Chevrolet

General Motors’ sole electric vehicle, the cheerful Chevrolet Bolt, will see its MSRP stand firm in the face of an EV tax credit that drops by half come April 1st, the automaker claims.

In the fourth quarter of last year, GM sailed past the volume barrier that triggers a wind-down of the federal credit, meaning Bolt buyers will see less of an incentive to get behind the wheel. The $7,500 credit falls to $3,750 next week, before halving again in six months time. Knowing that EV buyers still need a push, GM plans to make the Bolt more attractive to green penny pinchers. (Read More…)

By on March 20, 2019

2017 Chevrolet Bolt - Image: Chevrolet

That headline was originally typed as “government cash,” except that wouldn’t be quite accurate, would it? Canada’s federal government tabled its budget Tuesday, and within those dry, dry pages was a helping hand for the struggling electric vehicle segment. While two of the country’s 10 provinces offer their own EV rebates (Ontario used to pony up a princely sum until a change in government last year saw the program kiboshed), there was never a federal program to stimulate the sale of green vehicles.

How does $5,000 pooled from your friends and neighbors sound? Good? Hold your horses, Tesla fans. You don’t apply. (Read More…)

By on February 14, 2019

Jaguar F-Pace 2.0TD - Image: Jaguar

Jaguar hopes U.S. buyers fling some woo its way this month, and it’s flinging bundles of cash at dealers to make it happen.

As the British brand is reportedly incentivizing its U.S. dealers to go above and beyond to break sales targets in the early part of 2018, savvy customers stand a good chance of finding a bargain. (Read More…)

By on January 2, 2019

2017 Chevrolet Bolt and 2017 Chevrolet Volt - Images: GM

Good news for would-be Volt owners? Not really. Chevrolet’s soon-to-be-discontinued plug-in hybrid won’t live long enough to suffer the indignity of a halved federal EV tax credit. It’s dead in March, though remaining examples of the car everyone should want will no doubt linger on lots through the spring.

On Wednesday, General Motors announced, as expected, that it became the second automaker to pass the federal government’s 200,000-vehicle threshold, kicking off a three-month countdown to a chopped incentive. (Read More…)

By on December 4, 2018

2018 Chevrolet Bolt - Image: Chevrolet

White House economic adviser Larry Kudlow announced Monday that the Trump administration is seeking an end to federal subsidies on electric cars. Interestingly, the move appears to be related to General Motors’ plant closings and layoffs. The company’s restructuring plan hasn’t gone over well with policy makers or the American public, with many accusing the automaker of abusing years of tax breaks, only to reduce its workforce as a way of pursuing new technologies, businesses, and further bolstering its profit margins.

However, cutting GM out of the electric vehicle subsidies deal is more likely to impact its rivals than anything else. The company said it’s on the cusp of the EV tax credit ceiling already, with the gradual phase-out of those incentives likely to take place through 2019. Yet Kudlow pointed to the elimination of the credits as one way of punishing GM for eliminating so many jobs, echoing President Donald Trump’s threats from last last week.

“As a matter of our policy, we want to end all of those subsidies,” Kudlow explained. “And by the way, other subsidies that were imposed during the Obama administration, we are ending, whether it’s for renewables and so forth.”  (Read More…)

Recent Comments

  • Dave M.: I remember test driving the new world car Escort in 1981 and went screaming to a Toyota Corolla….
  • PandaBear: If you pay $79 for a smog test you are doing it wrong. Go to craigslist and see who’s offering a...
  • Oldschool: I think GM and Chevy executives are drinking some bomb ass kool aid or something of a strong denial drank...
  • SCE to AUX: Can’t say I agree with the headline or the article’s claims about Mr Pai. The mfrs claims...
  • FreedMike: Maybe Richard Parker decides to have him for dinner in this version.

New Car Research

Get a Free Dealer Quote

Staff

  • Contributors

  • Timothy Cain, Canada
  • Matthew Guy, Canada
  • Ronnie Schreiber, United States
  • Bozi Tatarevic, United States
  • Chris Tonn, United States
  • Corey Lewis, United States
  • Mark Baruth, United States
  • Moderators

  • Adam Tonge, United States
  • Corey Lewis, United States