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General Motors’ Average Transation Prices Up Seven Percent, Incentive Spending Up Five Percent

General Motors sales were up 18 percent last month, largely due to a spike in fleet sales and low oil prices sparking a demand for large trucks and SUVs. But the automaker also saw growth in other areas, including in how much its customers spend on their new vehicles.

According to J.D. Power estimates supplied to Automotive News by GM, the average amount consumers spent on their new GM vehicle rose 7.4 percent on a year-over-year basis in January. This represents a jump of $2,400 to an average price of $34,800. This could mean buyers are optioning their vehicles with more content, or it could be a result of more full-size vehicles sales, which often command higher prices.

While GM was making more money per vehicle last month, they were also offering more incentives. TrueCar data indicates the automaker spent an average of $3,314 per vehicle on incentives, up 5 percent from last year. While spending is up on a year-over-year basis, the automaker’s incentive spending as a percentage of ATPs was down 0.3 percent month-over-month to 10.5 percent. This is an improvement for GM, but was less than the industry-wide result of 9.7 percent. 

Sam loves to write and has a passion for auto racing, karting and performance driving of all types.

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