General Motors Ramps Up Incentives In The Month Of November
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It’s something General Motors has prided itself on as of recent: decreased incentives spending and overall self-discipline. However, the month of November tells a different story.
According to The Truth About Cars, General Motors’ incentive spending jumped significantly during the month of November. Coincidentally, the General saw big sales gains for each of its brands. Year-over-year, incentives climbed $1,302 from 2015 to an average of $4,912 per vehicle sale.
The incentive spending is likely a strategy to clear out GM’s inventory surplus, which sits around 873,000 vehicles in stock. That figure is 26 percent more inventory than this time in 2015.
Another one-eighty from recent GM strategy was in fleet sales. The automaker increased its fleet sales 19 percent in November of 2016, however, year-to-date, GM’s overall fleet sales are still down.
GM placed the most cash on the hoods of the ever-hot pickup truck segment, spending $5,753 on each Chevrolet Silverado and GMC Sierra full-size. That figure shows an increase of 46 percent year-over-year.
The incentives are also likely in response to a plateauing car market in the United States, something GM said it is taking seriously. As we round out the final month of 2016, it could be a very good time to pick up a new vehicle, though.
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That explains the steep increase in volume year over year in November allowing GM to outpace all other multi-brand automakers.
Although the volumes look glossy on a spread sheet, dramatically increasing incentive spending is not the way to go.
GM needs to be disciplined in its incentive spending especially for Buick and Cadillac brands as a way to protect residual values and not come off as bargain luxury.
Does gm typically offer big incentives in January comparable to November 16 December 16 incentives for the Cadillac vehicles .
Volumes grow this time of year and most companies have major Christmas sales to keep show rooms busy in a holiday season.
Next in January to March the auto show special are offered to keep the dealers busy in the middle of winter.
Just watch TV and see the special offered over the next few months as to what is offered by all.
GM also has a deep inventory so there should be some good deals on some models.