Retail Incentives on New Vehicles Decreased in June
New-vehicle incentives decreased in June compared with a year ago, according to actual retail transaction data from the Power Information Network (PIN), LLC, an affiliate of J.D. Power and Associates. The average new-vehicle incentive amount in June (including all incentive categories) was $2,690 — down almost 6.6 percent versus May and down 7.6 percent compared with June 2003. While incentive amounts dropped in June, the average new-vehicle retail prices (less rebates) remained flat. 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 dealer's lot an average of 68 days, 4.6 percent longer than in May and nearly 8 percent longer than vehicles sold in June 2003. Used vehicle prices in June increased slightly when compared with a year ago. The average price of a used vehicle in June was $15,568 — up 3.2 percent compared to June 2003. Used cars sold for an average price of $13,973 — up 2.6 percent from a year ago — and used trucks sold for an average of $17,454-- up 4.2 percent. The percentage of consumers who traded in a vehicle in June and owed more than their trade-in was worth was considerably higher than it was a year ago. More than 35 percent of consumers who traded in a vehicle had a higher payoff than the cash value of the vehicle--up 18.8 percent from June 2003.