Jump to content
Gorehamj

Study Points To Lowered Truck Incentives

Recommended Posts

iseecars truck deals.png

John Goreham
Contributing Writer, GM-Trucks.com
12-5-2018

The hard-working research team over at iSeeCars has completed a new study. This new one doesn't use the easiest to understand metrics, but the conclusion is pretty clear. Among all vehicles being promoted by manufacturers this holiday season, trucks are among those with the lowest incentives. What the group looked for this time were models that had the highest number of advertised deals that took 5% or more off of the sale price of the vehicle. In other words, how many deals are out there, not necessarily the best deal with the single most savings. Many deals are regional and iSeeCars included used cars in this analysis of over 2.4 million sales transactions. 

 

The average percentage of listings that offer a deal that takes 5% or more off the price of a vehicle this time of year is 40.5%. That means about 4 out of ten vehicles are already being discounted before a shopper arrives. iSeeCars looked at how a given model varied from that average. In other words, is a model more or less likely to be a model with a deal.

iseecars models with most deals.png

The top model for deals is the outgoing BMW 3 Series. The lucky auto writers who cover that model are on planes as we type this story headed to the new 3 Series launch. BMW and used car dealers is trying to get rid of the older series ahead of the new. The Mercedes E-Class and the Audi A4 are also being heavily advertised with deals. “The growth in popularity of auto leases in recent years has led to an influx of these often-leased luxury vehicles in the used car marketplace after their lease terms end,” said Phong Ly XCEO of iSeeCars.

 

Among all types of vehicles, trucks have the least number of deals. The Silverado is among the vehicles with the lowest number of deals overall. If you think about the state of the truck market now, this seems to make sense. The Ram, Silverado, and Sierra are all new for this season. 

 

The full study can be found here.

Share this post


Link to post
Share on other sites

Seems like a very difficult way to track incentives...Automotive News an many others already track incentives.

 

And BMW ALWAYS pushes incentives at year end. It’s the inevitable race for the “luxury sales crown” that happens with BMW, Mercedes-Benz and Lexus.

 

This literally happens every year.

 

But overall, incentive spend for the industry has dropped, average MSRPs are up (largely due to cheap cars falling out of favor), interest rates are up, and we can expect to see an overall sales slowdown any day now...analysts are a bit stumped why we haven’t seen it yet.

 

 

Sent from my iPhone using Tapatalk Pro

 

Share this post


Link to post
Share on other sites

Yeah, it was hard to get my brain around. I did find it interesting that the trucks were less often discounted though.  I saw a $12,500 discount on 2018 Silverado advert immediately after I posted this.  

Share this post


Link to post
Share on other sites

It’s goofy because the criteria is “% More Deals than Average”

Full size pickups lead the industry in total incentives, but because everyone takes advantage of heavily discounted trucks, the average is quite a high number, even though they’re ranked low in the study.

Very odd study for sure.


Sent from my iPhone using Tapatalk Pro

Share this post


Link to post
Share on other sites

i have to say i do agree about not much discounts/incentives on trucks in general.   a good friend of mine has been looking for a Silverado 1500 crew cab for a while now,he's bounced back and forth between new and used.  prices are high,and i can tell you one thing from all this.  they want to sell you a double cab Silverado much faster than a crew cab.    all our local dealers are flooded with double cabs.    also, im sure because the interest rates are high,that doesnt help either.

  • Like 1

Share this post


Link to post
Share on other sites

Not too much of a shock after a new release year.  Happens all the time.  That and Toyota is full of themselves, and rarely give good discounts making them the worst deal you can get.  Toyota is such a bad company.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Similar Content

    • By Gorehamj
      John Goreham
      Contributing Writer, GM-Trucks.com
      7-5-2019
      Each quarter GM breaks down the company's deliveries (often called sales). Normally, the breakdown is by model. That means the Silverado is one line item. Same with Sierra. However, the auto press is all abuzz with reports that the Silverado has slipped to number three in sales overall behind Ram. While true, there is more to the story and we are not ones to make excuses for GM here as you know if you follow the GM-Trucks.com news page.
       
      What is really happening is that GM is crushing it. Everything the company is focusing on is doing great. Including Silverado and Sierra. GM is still transitioning the generations and the sales & deliveries are following the production ramp. To help illustrate this, GM included -for the first time- a breakdown of the Sierra and Silverado trucks by capacity. In other words LD (light duty) HD (heavy duty) and MD (medium duty). We won't bore you with a long list of numbers, but we took away one interesting fact we suspected could never really prove. GM sells three times as many LD trucks as it does HD. MD is a very small segment. So now we know that! Here's what GM had to say. “The light-duty segment is the highest-volume part of the pickup market and we are expanding choice to make sure that we meet the needs of every customer,” said Kurt McNeil, U.S. vice president, Sales Operations. “Heavy-duty trucks, by contrast, are about 25 percent of full-size pickup sales. Our HDs are purpose-built machines for people who need maximum capability, and we are poised for significant growth.”
       
      GM also came right out and said what its fleet sales volume is - 23% of all sales.  Contrast that with Honda that is nearly zero and you can see that the two companies, though they have some overlap, are in different businesses. 
       
      Also important to GM, since it is quitting on "cars," is that its crossovers are selling like hotcakes. And it makes no difference where they are built. Buick's imports from China are selling well, as are the Mexico-built Chevy's. As are the SUVs made in the U.S. 
       
      Here are the GM Highlights from its sales report this week: 
      -Crossover sales set a new second quarter record after sales grew year over year by 17 percent.
      -Sales of the Chevrolet Silverado 1500 crew cab and GMC Sierra 1500 crew cab were both up 12 percent year over year.
      -The Chevrolet Equinox and Traverse and GMC Canyon all delivered record second quarter sales.
      -Sales of every Buick crossover were up year over year, with the Envision posting a 28 percent sales increase. The Enclave was up 21 percent and the Encore was up 5 percent.
      -Buick deliveries were up 5 percent and GMC deliveries were up 10 percent.
      -The all-new Cadillac XT4 continues to lead its segment and the all-new Cadillac XT6 has begun shipping to dealers. Cadillac crossover deliveries were up 19 percent in total year over year, helping the brand grow both total and retail sales.
      -The Chevrolet Suburban, Tahoe and GMC Yukon XL were each up more than 20 percent compared to a year ago.
       
      Here Are Some Truck-Specific Notes:
      -GM has installed new body shops, upgraded paint shops and reconfigured general assembly at its plants to increase capacity by 20,000 units compared with the outgoing model.
      -Based on the most recent data available, retail customers have registered more GM full-size light-duty pickups in 2019 than either Ford or Ram. GM light-duty registrations have also led Ford F-150 in 11 of the last 12 months.
      -The first new GM models to launch were the Chevrolet Silverado and GMC Sierra crew cabs in late summer 2018. Sales of each were up more than 12 percent in the second quarter versus a year ago.
      -After two consecutive quarters of double-digit year-over-year growth, GM’s crew cab mix has risen from 60 percent of sales to almost 75 percent.
      -Full production of all cab styles started in March for both retail and fleet orders, and inventory is approaching target levels, especially for the most affordable regular and double cab models. Sales of these models were down year over year due to limited availability.
      -Customer demand for Chevrolet’s new Trail Boss models — the first full-size pickups equipped with a 2-inch factory-installed lifted suspension — have far exceeded expectations, so GM will double production. In addition, for 2020, Chevrolet will offer both Trail Boss models with a 420-hp, 6.2L V-8 engine.
      -More than 95 percent of all-new GMC Sierra 1500 crew cab sales are high-end trims including SLT, AT4 and Denali.
      -GM is introducing a new refined, very powerful and extremely fuel-efficient 3.0-liter Duramax diesel that is expected to be available later this quarter.
      -GM has consolidated heavy-duty pickup production at its Flint (Michigan) Assembly plant. The company has installed new body and paint shops and created 1,000 new jobs to support a capacity increase of 40,000 units compared to the outgoing model.
      -The company is sharply increasing production of crew cab and diesel models to meet customer demand.
      -Early production will be focused primarily on crew cab models, similar to the light-duty launch cadence. Trucks began shipping to dealers in the second half of June, with availability expected to grow throughout the third and fourth quarters.

    • By Gorehamj
      John Goreham
      Contributing Writer, GM-Trucks.com
      6-10-2019
      If you are searching for a great value on a lightly used vehicle, iSeeCars.com has some suggestions. The group evaluated about 5 million used car transactions of three-year-old, 2016 MY vehicles to see which had the highest discount off of their new car price. Many GM models make the list. Here's a quick look at the models with the highest depreciation.
       

       
      Graduates take note: In the under $20K category, the Chevy Impala is hard to ignore. With a three-year-old average price of just $14,745 it is a LOT of car for the money. Its 50% depreciation rate over three years is way ahead of the average of about 34%.
       
      Those graduates headed into higher-paying new jobs may want to consider the Cadillac CTS. With an average price of just $26,785, it is a luxury car on a budget. The XTS is about the same price, but not eactly a graduate's dream car. However, it is perfect for those looking for an Uber vehicle or airport limo for their fleet. 
       
      The $26K Buick Enclave also makes iSeeCars family vehicle list. With a depreciation of 48% it is about 10% ahead of the pack. In the truck category, the best deal may be the GMC Sierra. With an average 3-year-old price of $33K it is a value that is hard to ignore. 
       
      See the full report from iSeeCars here.
       
    • By Gorehamj
      John Goreham
      Contributing Writer, GM-Trucks.com
      4-9-2019
      iSeeCars.com has completed a study this month of which vehicles owners most often sell on within one year of buying them new. iSeeCars.com analyzed more than 46 million individual new vehicle sales and determined how many of those new cars, trucks, and SUVs were resold as used within the first year with at least 1000 miles on the odometer.  The average for all vehicles is just 3.4%. However, some trucks are sold on at more than twice that rate. 

      Among the trucks that owners want to get rid of most are Nissan trucks. All three of Nissan's truck offerings top the list of those owners sell most often within one year of ownership. iSeeCars CEO Phong Ly offered his opinion as to why the Nissans stand out in this regard. “The standard full-size Titan and its larger XD variant do not measure up to their rivals in terms of towing capacity and hauling, which suggests that owners might turn them in for something more rugged,” said Ly. “The compact Frontier has the same shortcomings for hauling and towing while also having the worst fuel economy in its class.”
       
      What say you GM-Trucks.com faithful? Why do the Nissans seem to be the outliers here?  To see the full report click here.
    • By Gorehamj
      John Goreham
      Contributing Writer, GM-Trucks.com
      4-2-2019
      General Motors released its Q1 U.S. sales figures today and the sales report is optimistically titled, "The First of GM’s All-New Pickups Posts a 20 Percent Q1 Gain." Yet, Silverado sales were down by 16% to 114,313 units.  Sierra was down by 2.2.% to 40,546. We looked back two years to 2017 and found that the Silverado was down compared to 2017 as well (128,456 units in Q1 2017). Sierra's sales were 49,810 in Q1 of 2017. So, in a nutshell, GM's trucks were down for the second consecutive year in Q1. Yet, GM found a headline that says "up 20%."  How?
       
      Deeper in the GM sales report the company says, "Combined sales of the 2019 Chevrolet Silverado 1500 and GMC Sierra 1500 crew cabs — the first of the company’s all-new full-size pickups to launch — were up 20 percent year over year." So, there is the answer. If that makes any sense. GM seems to clarify the situation by saying, "Availability of all-new regular-cab and double-cab pickups was very limited during the quarter due to launch timing, but full production of all cab styles started in March and they currently are arriving in dealer showrooms."
       
      Overall, GM's sales were down 7%. GM attributes this to a very strong Q1 2018. GM sees a rebound for the full year. “After a slow start to the year, the retail SAAR has risen each month since January,” said Elaine Buckberg, GM chief economist. “Consumer sentiment continued to recover in March and the other key drivers of auto sales like employment, wage growth and household balance sheets are healthy. The Fed paused in raising interest rates, which eases a headwind facing auto sales. Overall, the U.S. economy is in solid shape, which bodes well for the industry outlook.”
       
      The Canyon was down for the quarter, but the Colorado was up 16% with 34,494 units sold. Compare that to the segment-leading Tacoma which sold 22,798 units just in March.  
       
      Image courtesy of Zane Merva.
    • By Gorehamj
      John Goreham
      Contributing Writer, GM-Trucks.com
      3-4-2019
      Our friends at iSeeCars have updated a study for 2019 that looks at what brands and models are the longest-lasting. One way to gauge how long a given brand of model lasts is to look at how many of them travel more than 200,000 miles. “With the right maintenance and care, today’s vehicles have the potential to reach 200,000 miles,” said iSeeCars CEO Phong Ly. “While large SUVs and pickup trucks appear most often on the list, those looking for sedans and minivans can also find a vehicle that is proven to be a high-mileage hauler.”
       
      To build its rankings, iSeeCars analyzed over 13.8 million cars sold in 2018 to determine which models have the highest percentage of cars that reached 200,000 miles. The study found that the top 14 models identified each have at least 2.2 percent (almost three times the overall average) of their vehicles reach that mileage. The top models include a mix of vehicle types with nine SUVs including a hybrid, three pickup trucks, a sedan, and a minivan.  
       
      The study found that GMC and Chevy are well above average and are ranked third and fourth overall. As in other studies we have seen recently, Cadillac did not score well, and finished well below average with the same score as Jeep and Chrysler. 
       
      In the model breakouts, the Chevy Silverado scored ahead of the GMC Sierra. The pickup category was interesting. The Chevrolet Silverado 1500 full-size pickup ranked fourth overall in pickups, while its mechanically silimar GMC Sierra 1500 ranks seventh and below the segment average. “The Chevrolet Silverado is considered to be more of a working truck, while the GMC Sierra markets itself as being more luxurious,” said Phong Ly, CEO of iSeeCars. “As a result, the Silverado may log more miles since it’s more likely to be used for work purposes.”
  • Recently Browsing   0 members

    No registered users viewing this page.

  • Forum Statistics

    209,411
    Total Topics
    2,244,528
    Total Posts
  • Member Statistics

    178,929
    Total Members
    8,960
    Most Online
    Capt'n Bill
    Newest Member
    Capt'n Bill
    Joined
  • Who's Online   109 Members, 0 Anonymous, 2,444 Guests (See full list)

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.