Available incentives for Buick vehicles fell by 44 percent year-over-year in the fourth quarter of 2021.
According to Cox Automotive, the available vehicle incentives for Buick products averaged $3,207 per vehicle in Q4 2021 – down 44 percent from $4,618 in Q4 of 2020.
GM has not had to offer steep vehicle incentives over the past year or so due to high vehicle demand, which has partly been caused by low inventory levels brought on by the semiconductor chip shortage. Incentive spending was also down at the automaker’s Cadillac, Chevy and GMC brands last quarter.
Across all four of its brands, GM’s incentive spending fell to an average of $1,919 per vehicle in Q4 2021. This compared with $5,115 per vehicle in Q4 2020, a significant 65 percent decrease year-over-year.
Less incentive spending at Buick led to higher average transaction prices, unsurprisingly. The premium brand’s average transaction price rose 14 percent year-over-year to $39,304, with all four of its vehicles seeing gains. The Encore and Encore GX both had an ATP of under $40,000, while the Envision’s ATP was also just shy of $40,000. The Enclave had the highest ATP at $51,283.
Buick had the lowest ATP of any of GM’s four brands last quarter. Chevy’s ATP stood at $50,336, while GMC’s was slightly higher at $62,501. The Cadillac luxury brand had the highest ATP at $77,143, largely driven by steep six-figure transaction prices for both the Cadillac Escalade and Escalade ESV.
GM reported record earnings of $14.3 billion pretax in 2021 this week amid high demand for its pricier vehicle models. The automaker is also forecasting earnings “at or near” record levels in 2022 as the global semiconductor chip shortage subsides.
“With an improving outlook for semiconductors in the U.S. and China, we expect our 2022 results will remain strong,” GM CEO Mary Barra said in the automaker’s 2021 earnings report this week.
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Comment
Pretty good but these are close to the ARP Buick should be getting if customers truly considered it a Lexus or even Acura rival.
The auto press is split as to Buick’s class segment with some comparing it’s vehicles to luxury brands like Audi and others benchmarking vehicles like Enclave to Ford and Toyota.
Buick is premium’s best kept secret with offerings like Envision well designed and with tip top fit and finish.