July 28, 2005
Vehicle shoppers not likely to buy without incentives
Irvine, California – Consumer dependency on new-vehicle incentives has reached an all-time high, according to AutoVIBES, a monthly automotive study. Fifty-one per cent of 2,000 U.S. adults polled who said they plan to purchase or lease a vehicle in the next twelve months are likely not to purchase in the absence of incentives. The study also shows that 67 per cent say the availability of incentives affects the specific make and model they are likely to choose, while 71 per cent say the incentives affect the timing of their vehicle purchase.
“The domestic manufacturers have trained their customers to look for incentives,” said Jack R. Nerad, editorial director and executive market analyst for Kelley Blue Book, which sponsors the study. “Because they have been taught to expect these incentives and rebates, domestic buyers often sit on their chequebooks until the incentives arrive and then they flock to the showrooms. The latest promotions from General Motors, Chrysler and Ford are the most recent examples, although the ‘incentive’ in these cases is haggle-free discounts off of the vehicle’s invoice price.”