With new vehicle demand reaching record highs and inventory levels at almost never-before-seen lows, there’s little reason for automakers to offer price incentives on their vehicles at the moment. For this reason, incentive spending at most major automakers has dropped significantly over the past 12 months or so, and General Motors’ Chevy brand has been no exception to the rule.
According to Cox Automotive, incentive spending at Chevy dipped 66 percent year-over-year from $2,672 in the fourth quarter of 2020 to $1,610 in the fourth quarter of 2021.
In line with this trend, Chevy’s average transaction prices were also up in Q4 2021, rising 21 percent to $50,336. These impressively high ATPs were driven largely by the Express delivery van and the Camaro sports car, which each posted impressive ATPs of over $44,000 throughout the quarter. The Chevy Silverado, which is the best-selling Bowtie-badged product, also saw ATPs rise eight percent to $54,432. The Chevy vehicle with the highest ATPs in Q4 2021 was the Chevy Corvette, which sold for an average of just under $85,000.
Across all four of its brands, GM slashed incentive spending by 65 percent in Q4 2021 to an average of $1,919 per vehicle. This compares with incentive spending of $5,115 per vehicle in the fourth quarter of 2020. Cadillac had the highest incentives at an average of $4,172 per vehicle, followed by Buick at $3,207 per vehicle, Chevy at $2,672 and GMC at $1,924 per vehicle.
While GM sales plummeted by 43 percent to 436,358 vehicles in the fourth quarter of 2021, Cox says it expects the automaker to still report solid earnings “because it slashed incentives and garnered hefty average transaction prices (ATP) despite lower sales.”
“GM clearly focused on the production of its high-ticket models, some of which had sales increases combined with ATP gains,” Cox Automotive observed. Pricier GM models that are helping to drive this ATP increase include the Silverado, Tahoe, Suburban and Corvette.
With automotive production output expected to remain low in 2022 as the semiconductor chip shortage persists, it’s unlikely incentive spending will rise very much at any of GM’s four brands this year.
Subscribe to GM Authority for more GM incentives news, GM sales news and around-the-clock GM news coverage.
Comments
GM can pull $5000-$10000 worth of rebates that you would, historically, see on all models, especially the 1500 Silverado’s and Sierra’s, from customers and that’s fine. A dealer charges $5000 over sticker and that gives GM a bad image? Can GM explain to me what the difference is? Let the downvotes begin.
I would say the difference is even if gm takes those incentives away you still aren’t paying over msrp. A dealer charging over msrp you are. The other reason you have no choice but to use a dealer because they used lobbyists 40+ years ago to pass laws that made it to where auto manufacturers can not get rid of them. So how is that right? Example whatever phone you use a new one comes out they say it’s going to be $1k you go to the actual store and they say naw we are charging $1500 because we can would you like that?
No I wouldn’t like that, but it happens with many things and I still buy them. Firearms, ammo, watches, GPUs, gaming consoles, food, shoes, boats, etc.
We don’t charge over MSRP at my store for any vehicle. Some people might have the view that even that is too much. A family of four will spend $300 a week on groceries or $15,600 a year. That same person will finance a vehicle for 5 years and spend $500 a month on a new vehicle for five years or $6,000 a year. That person will have no problem paying the price listed for groceries but will spend hours of their lives trying to save $500 on the price of a vehicle, and the dealerships are the bad guys? Why is it okay for one product but not for the other? Why don’t people negotiate at checkout every time they go shopping?
People will argue that’s fine because it’s a smaller purchase at the time of sale, or it’s food so it’s a necessity. But isn’t a vehicle a necessity for most people? I need my vehicle to go to work so I can make money to purchase the food, to go to the doctors, etc.
If you are actually looking to fill the positions listed above, you should add clickable links to an applications page, where qualified people can give you their CV. I do see that one of those positions is web developer. ✌️
Dealerships are loving this they have the upper hand
I travel passed a Chevy Dealer that must be about 4 acres and every time I pass there are less and less vehicles. Lot is almost empty.
Was counting on incentive to purchase a new chevy Silverado 3500hd , Just sold my Ram 3500drw my mind was made up to return to my first love the chevy brand , but when i recieved the call that my build was ready to be submitted needed to finalize the order, my wife and i were overjoyed things were looking up. But when i happened to return to the build site and noticed that GM was not giving any offers on the 3500hd drw that we have been scraping our sizeable down payment for , not happy, GM you took away the incentive but not my choice. Need to look at the bottom line of the customer also.
Low inventory= rip off
Not necessarily, used car values are higher than they have ever been, which means a nice trade in that is up to 6, 7 years old is worth thousands more on trade than what you would normally expect to receive on trade.
What’s the point of buying anything I looked forward to getting at least 500 off now that I’ve been waiting I won’t get anything feel like walking away .I know the dealer gets his rollback money when he sells and we get no incentive to buy thanks
Why not GM. The consumer is getting screwed at every turn so just join in and bend us over. Its getting sick
BEEN TRYING FOR TWO MONTHS TO BUY A 2O22 BLAZER HERE IN CANADA … GOT THE PRICE DOWN TO 60.395.oo CASH FROM 67,995. THEN I LOOKED OVER BUILD PRICE .. AND THEY HUMBER VIEW ….JACKED THE SRSP… FROM 47.989 . TO 55.989.. ? SEEYA . CHEERS