After oil companies, it’s now the turn of steel firms to hike prices. And that’s only one reason of why vehicle prices are moving up.
Edmunds.com, the automotive price-tracking service, estimates incentives — discounts and other sales gimmicks — averaged $2,002 per vehicle in May, down $107 per vehicle from April and down $695 from last May.
As Edmunds.com reported last month, average incentives remain at their lowest levels since 2005. The industry’s total aggregate incentive spending this month is estimated to have totaled approximately $2.3 billion, down 5.8 percent from April.
“The continuing market shift toward small fuel-efficient vehicles is keeping overall auto maker incentives at the lowest levels we’ve seen in years,” industry analysis director Jessica Caldwell said.
At the same time, the online information service said offers are improving for some large auto models now suffering from weak demand.
Looking at individual brands, Edmunds discovered that the lowest incentives were found at Smart ($72 per vehicle sold), with Subaru in the second-place slot at $365 spent per vehicle sold.
Conversely, Edmunds found that the heftiest incentive-spending was at Saab ($5,137) and Cadillac ($4,714), respectively.