Vehicle incentive spending, transaction prices head in opposite directions
Posted on Monday, August 4, 2014 at 9:50:03 AM
Interest in buying a new vehicle is always high, but the trick comes down to figuring out how to balance the expenses. For many, this means acquiring affordable auto financing. Couple that with the deals offered by manufacturers, and shoppers have a way to get their dream cars.
According to TrueCar, July's incentive spending was the highest for that month since 2010. This rise is one reason why the average transaction price, or ATP, dropped 1.2 percent this past month to $30,636.
"Incentive spending in July was above this year's average, taking transaction prices down about one percent," said John Krafcik, president of TrueCar. "Other than GM and Nissan, every full-line automaker increased incentive spending over last year. With growing discounts and low-interest financing readily available, it's a great time to buy a car."
In addition, Cars.com supported these claims, reporting that incentive spending in July climbed 8 percent year-over-year. The gains are smaller compared to June, predicted at only 1 percent, while the average incentive amount for light vehicles this past month was $2,774. These discounts help potential buyers better handle the expenses of owning a new vehicle.