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Incentives Will Increase
Posted on: 04/17/2017
Thomas King, vice president, Power Information Network U.S. OEM operations, speaking at the NADA/J.D. Power Automotive Forum in New York said he expects record U.S. auto sales again this year, for the third year in a row.
Although Mr. King expects record U.S. auto sales in 2017 it should be noted that through March, year-to-date sales are down 1.5%.
Mr. King expects the average incentive per new unit to surpass $4,000 for 2017. A huge increase occurred in the first quarter of 2017 when the average incentive jumped to $3,900 from $3,400 per unit last year.
“Incentives at industry level only ever rise, they basically never come back down … because everybody is chasing that short-term fix,” King said.
Higher incentives are certainly good news for the consumer and as dealer inventories grow larger the solution, in part, is to continue to increase incentives, particularly with cars that are not selling.
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