Automotive Fleet
MenuMENU
SearchSEARCH

Average Cost of Incentives Climbs to New Record

Edmunds.com an online resource for automotive information, reported that the average manufacturer incentive per vehicle sold in the United States set a new record of $2,885 per vehicle sold in July 2004, up $217, or 8.1 percent, from July 2003, and up $138, or 5.0 percent, from June 2004.

by Staff
August 12, 2004
3 min to read


Edmunds.com an online resource for automotive information, reported that the average manufacturer incentive per vehicle sold in the United States set a new record of $2,885 per vehicle sold in July 2004, up $217, or 8.1 percent, from July 2003, and up $138, or 5.0 percent, from June 2004. Edmunds.com's monthly True Cost of Incentives (TCI) report takes into account all of the manufacturers' various United States incentives programs, including subvented interest rates and lease programs as well as cash rebates to consumers and dealers. To ensure accuracy, Edmunds.com bases its calculations on sales volume, including the mix of vehicle makes and models for each month, as well as on the proportion of vehicles for which each type of incentive was used. Overall, combined incentives spending for domestic Chrysler, Ford, and General Motors nameplates passed the $4,000 mark for the first time, reaching $4,011 per unit in July, up $192 from June 2004. Chrysler lowered its incentives spending in July by $185 to $3,384 per vehicle and lost 2.3-percent market share. Ford had the biggest monthly increase in incentives spending, $358, for an average of $3,686 per vehicle, while its market share fell 1.3 percent to 16.8 percent – the lowest level ever recorded by Edmunds.com. GM increased incentives spending for the fourth month in a row, by $156 to $4,467 per vehicle, and gained 3.4 percent market share. "Successful new model introductions like the Chrysler 300 – which made up 27 percent of the brand's sales in July – show the benefit of introducing exciting new products priced right for the marketplace," said Dr. Jane Liu, vice president of data analysis for Edmunds.com. "Both Ford and GM have new vehicles coming that should help them lower their incentives spending, at least at the beginning of the new model year." In July 2004, Korean automakers spent $1,833 – down $35 – and European automakers spent a record $2,562 – up $228 – per vehicle sold. Japanese automakers spent $1,024 per vehicle sold in July, up from $921 the prior month. "As evidenced by the record incentives spending by the European automakers in July, the incentives war is certainly not confined to the domestics," remarked Dr. Liu Of all brands, Mini spent the least on incentives, $80, while Scion spent only $212 per vehicle and Porsche spent only $257. At the other end of the spectrum, Cadillac spent the most incentives dollars per vehicle for the fifth consecutive month, $7,878, followed by Lincoln at $5,480, and Jaguar at $5,248. Among vehicle segments, large SUVs continued to offer the highest average incentives in July, $4,885 per vehicle. Other segments with high incentives were luxury cars at $4,306 and large cars at $3,663. Compact cars had the lowest average incentives at $1,662, followed by sports cars at $1,987, and luxury sport cars at $2,050. Midsize SUVs have lost the most market share since July 2003, decreasing from 13.5 percent to 12.9 percent, while large SUVs have gained the most market share during that period, up from 5.0 percent to 6.4 percent of the U.S. new vehicle market. "Although incentives don't always drive market share proportionally, it seems the great deals on large SUVs are hard for consumers to ignore," noted Dr. Liu.

More Remarketing

Blue bar graphs showing wholesale used vehicle price shifts according to vehicle segment.
Remarketingby News/Media ReleaseMay 11, 2026

Wholesale Used Vehicle Prices Slightly Up In April

The Iranian conflict and rising gas prices inject much uncertainty into the future wholesale used vehicle markets, as higher gas prices soak up spendable income from vehicle buyers.

Read More →
James McKinley stands on the stage during the 2026 CAR Conference and speaks about his acceptance of the Value Champion of the Year Award.
Remarketingby Chris BrownMay 8, 2026

CAR2026: James McKinley Wins Value Champion of the Year

James McKinley of City Rent a Truck was named the inaugural Fleet Value Champion at the CAR Conference for his data-driven approach to fleet lifecycle management and vehicle remarketing.

Read More →
Eric Autenrieth accepts the Fleet Remarketer of the Year award on a stage at the CAR Conference in Cleveland, OH.
Remarketingby StaffMay 8, 2026

CAR2026: Eric Autenrieth Wins Remarketer of the Year

Eric Autenrieth was recognized at this year's CAR Conference as the Remarketer of the Year.

Read More →
Ad Loading...
Lawrence Knapp stands on stage as he hives his acceptance speech for the cosigner of the year award.
Remarketingby StaffMay 7, 2026

CAR2026: Lawrence Knapp Wins Consignor of the Year

Lawrence Knapp won the Cosigner of the Year award at this year's CAR Conference.

Read More →
Image of three award winners at 2026 CAR
Remarketingby Faith HowellMay 6, 2026

2026 CAR Awards Celebrate Industry Excellence

CAR’s annual Fleet Remarketing Awards opened a reimagined 2026 conference designed to bridge the worlds of fleet management and automotive remarketing.

Read More →
Chris Brown standing on stage at The Conference of Automotive Remarketing announcing this year's award winners.
Remarketingby StaffMay 5, 2026

Inside the CAR2026 Awards: Leaders, Legacy & What’s Next

Here's a look inside the awards ceremony at the CAR Conference, where industry leaders reflected on the growth, impact, and future of automotive remarketing.

Read More →
Ad Loading...
A manual, traditional logistics dispatch center versus a futuristic AI-driven illustrative diagram of a future logistics operation.
RemarketingMay 1, 2026

The Predictive Pivot: How AI and Data Are Redefining Auto Logistics in 2026

AI is no longer a luxury but the baseline for profitability in 2026. Auto haulers that adopt these tools now will quickly outpace those that use manual workflows or take a wait-and-see approach.

Read More →
collage of conference speakers
Remarketingby Chris BrownApril 30, 2026

CAR 2026 Recap Part 2: Closing the Gap Between Data & Remarketing Value

The second half of CAR 2026 examined how fleets can translate lifecycle strategy, vehicle data, and market shifts into higher real-world results.

Read More →
Collage of CAR speakers
Remarketingby Chris BrownApril 27, 2026

CAR2026 in Two Words: Velocity, Value (Part 1)

The 2026 Conference of Automotive Remarketing convened with a mandate to involve a new constituency — fleet managers — and an updated mission to demonstrate unrealized value in de-fleeted vehicles.

Read More →
Ad Loading...
Johan Verbois, executive director of CARA, stands outdoors in a blue blazer with arms crossed, with blurred vehicles and greenery in the background.
Remarketingby News/Media ReleaseApril 27, 2026

CARA Appoints Johan Verbois as Executive Director

CARA recently opened up a part-time executive director position and appointed Johan Verbois for the role.

Read More →