Serves the Commercial Small Fleet Market of 10 – 50 Vehicles

New-Car Cash Rebates Fall in June

July 22, 2004

Cash incentives for new vehicles shrank in June compared with the same month a year ago. According to actual retail transaction data from the Power Information Network (PIN), an affiliate of J.D. Power and Associates, the average new-vehicle incentive amount in June was $2,690, down almost 6.6 percent compared to May and down 7.6 percent compared with June 2003.However, incentives on large new SUVs bucked the downward trend. Rebates for large SUVs averaged $4,774 in June, the highest among vehicle segments, according to Edmunds.com. The average incentive for June 2003 was $3,829. Ford and GM are offering some of the most generous incentives. In July GM is offering $5,000 rebates on 15 truck models, including the Suburban.While incentive amounts dropped in June, average new-vehicle retail prices (taking rebates into account) did not increase. The average price consumers paid for a new vehicle in June was $25,206, with new cars selling at an average of $22,537 and new trucks at $27,329. New vehicles sold in June sat on the dealers' lots an average of 68 days, 4.6 percent longer than in May and nearly eight percent longer than vehicles sold in June 2003. Used vehicle prices in June increased to $15,568, up 3.2 percent compared to June 2003. Used cars sold for an average price of $13,973, a 2.6 percent increase from a year ago. Used trucks sold for an average of $17,454, a 4.2 percent increase. Meanwhile, PIN found the percentage of consumers who were “upside-down” on their loans (they owe more than the vehicle is worth) in June was considerably higher than it was a year ago—over 35 percent compared to 18.8 percent from June 2003.
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