The end-of-year rush for car sales is traditionally a time of competitive deals, but 2024 is shaping up to be particularly intense. Slowing sales have amplified the urgency for automakers and dealerships to move inventory, resulting in a surge of attractive incentives.
According to Kelley Blue Book, a leading vehicle valuation firm, new vehicle sales incentives in October 2024 were a staggering 60% higher than the same period in 2023. This trend is expected to persist through the remainder of the year. Cox Automotive analyst Erin Keating notes, “This is the time for automakers to make their final push for 2024 sales. While some focus on production management, many will likely maintain or even increase incentives to attract buyers.”
Deep Discounts and Competitive Offers
October saw eight automakers offering average incentive packages exceeding 10% of the average transaction price (ATP). Stellantis, with its US brands Chrysler, Dodge, Jeep, and Ram, led the charge, offering incentives above the industry average. This aggressive approach comes as Stellantis grapples with slumping sales figures in 2024.
Conversely, luxury brands like Porsche, Toyota’s premium brand Lexus, Land Rover, and Cadillac maintained the lowest incentive spending, reflecting their stronger market position.
Electric Vehicle Incentives Amplified
Electric vehicles (EVs) also witnessed a significant jump in incentives. In October 2024, average EV incentive packages, including applicable government incentives, reached 13.7% of the ATP, up from 11.6% in September and more than double the 5.6% recorded a year earlier. Throughout 2024, average EV incentives have hovered around 11% of ATP, considerably higher than the overall industry average.
Beyond New Car Incentives
Year-end deals extend beyond new vehicles and traditional incentives. Car rental giant Hertz, facing a surplus of 30,000 used EVs, has been aggressively cutting prices on popular models like Teslas, Chevrolet Bolt EVs, and Hyundai Kona Electric SUVs.
Federal tax incentives for EV purchases also remain a factor, offering up to $7,500 for new EVs and $4,000 for used ones. These incentives, however, are subject to change and potential expiration.
Seizing the Year-End Opportunity
The current market dynamics present a favorable opportunity for car buyers. With automakers vying to clear inventory and boost year-end sales, consumers can leverage the competitive landscape to secure significant discounts and attractive financing options. Whether you’re in the market for a traditional gasoline-powered vehicle or an electric vehicle, now is the time to explore the numerous deals available and potentially drive away in a new or used car at a substantial saving.
