Auto sales volume is up, but that doesn’t mean the industry is resting on its collective laurels. Automakers are using a number of discounts and other mechanisms to keep these sales churning. In June for example, incentives reached an all-time high. An average of $3,278 per vehicle was registered, which again makes it a record setting summer month.
According to monthly forecasts developed by J.D. Power and LMC Automotive (a joint collaboration), the June $3,278 per vehicle discount is $119 above the June 2015 number. This is a four percent increase, something not seen for quite a while.
Coupled with these incentive numbers were new vehicle transaction prices also hit all-time highs. Consumers appear to be offsetting higher prices by examining leasing options and longer terms on loans. Total U.S. sales are expected to set a record for the first half of 2016. Analysts typically look at high incentives and (in most cases) rightly [...]