Incentive Spending Declines

By Staff Writer January 28, 2019 579

ALG is introducing the new Retail Health Index (RHI) to measure automaker brand health.


RHI strips away the impact of price cuts, to show which OEMs are growing retail share due to increased consumer demand, versus which are "buying" share through higher incentives.  

Looking at the industry overall, including fleet deliveries, ALG projects total new vehicle sales will reach 1,157,796 units in January, up 0.3 percent percent from a year ago. This month's seasonally adjusted annualized rate (SAAR) for total light vehicle sales is an estimated 17 million units.

Excluding fleet sales, U.S. retail deliveries of new cars and light trucks should increase 0.8 percent to 941,218 units. 

Incentive spending by automakers averaged an estimated $3,642 per vehicle in January, down $33 or 0.9 percent percent from a year ago, and down 3.1 percent from December. 

ALG also evaluates average transaction price (ATP) as an indicator for its Retail Health Index. For January, ALG estimates ATP for new light vehicles was $34,274, up 1.9 percent from a year ago while incentives as a percentage of ATP was down 2.8 percent.

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Last modified on Monday, 28 January 2019 23:44