7.7% of the transaction price… 60% surge
Electric vehicles are up 144.6% from the previous year.
To deplete inventory and achieve annual goals
Trump election market uncertainty
As new car incentives expand, there is analysis that it is a good time to buy. A customer browses a new car at a dealership in Tustin. Reporter Park Nak-hee
As new car incentives continue to expand, it is good news for consumers.
According to automobile market research company Kelly Blue Book, new car incentives, which have been on the rise for two years after hitting bottom in the third quarter of 2022, soared to 7.7% of the average transaction price last month, up 6% from the previous month and more than 60% from the same month last year. did it
This phenomenon is believed to be because the end of the year is approaching and automakers, concerned about next year’s market uncertainty due to Trump’s election, are depleting inventory and competing to expand incentives to achieve their annual sales goals.
Puente Hills Hyundai Fleet Manager Charlie Jeong said, “With Trump’s election, companies are encouraging sales to clear inventory before the inauguration, and consumers are flocking to leasing due to concerns about the abolition of electric vehicle tax credits. Sales of internal combustion engine passenger cars are sluggish. He explained, “This month and next month are the best times to buy a new car because it is the model year change period.”
The average incentives of eight major companies exceeded 10% of the transaction price, and in particular, Stellantis’ Chrysler, Dodge, Jeep, and Ram were found to have provided incentives that exceeded the industry average. On the other hand, Toyota, Porsche, Cadillac, and Land Rover had the least incentives.
Among segments, compact SUVs, with 25 models competing for sales, recorded the highest level, accounting for 9.4% of the average transaction price. Pickup trucks followed at 8.7%, and mid-sized SUVs, with 30 competing models, accounted for 8.0%.
In particular, in the case of electric vehicles, incentives amounted to 13.7% of the average transaction price, an increase of 18.1% from the previous month. It has surged 144.6% compared to the same month last year, which was 5.6%, and is leading the boom in electric vehicle leasing and sales.
It turns out that the popular models sought by Koreans do not have many incentives. Jay Jang, vice president of Eden Automobile in LA Koreatown, said, “New car sales have been slowing down since September, but Hyundai Elantra, Sonata, Toyota Camry and RAV4 are still selling well. Popular vehicles such as the Lexus NX, Toyota Sienna, and Prius are still difficult to find in stock or you have to wait a week or two. “New car sales will become active again in December,” he predicted.
The average new car transaction price last month was $48,623, up 0.41% from $48,423 in September, with the Mitsubishi Mirage being the only one traded below $20,000.
The average price of electric vehicles was $56,902, down from $57,580 the previous month, but up 0.9% from the same month last year.
Looking at the brands whose new car transaction prices fell the most compared to the same month last year, electric car company Polestar ranked first with a 20% plunge, and Mercedes-Benz ranked second with a 10.2% drop. On the other hand, Tesla rose the most, rising 10.6%.
Among Korean car brands, Kia’s sales increased by 8.7% compared to last year, while Hyundai Motors and Genesis increased by only 1.9% and 0.7%, respectively.
Among Japanese cars, Acura and Infiniti ranked first and second with increases of 8.1% and 7.7%, respectively, followed by Honda 3.6%, Lexus 2.7%, Toyota 2.5%, and Mazda 1%.
The average transaction price by segment rose the most for luxury passenger cars at 27.9%, followed by luxury full-size SUVs at 13.0%. Full-size passenger cars fell by 7.9%, while subcompact cars and full-size SUVs showed price drops of 4.7% and 3.2%, respectively.
Kelly Blue Book predicted that incentive purchase benefits will continue until the end of this year, which will intensify sales competition in the year-end automobile market.
Text and photo = Reporter Park Nak-hee naki@koreadaily.com
