Chevy incentives fell by nearly 60 percent year-over-year in Q2, so it’s unsurprising that deals and discounts were also quite hard to come by over at GMC, with incentive spending at GM’s premium truck brand falling by more than 61 percent in Q2.
The average incentives on a GMC vehicle dipped 61.4 percent in Q2, according to Cox Automotive, falling from $4,234 in Q2 of last year to just $1,633. GMC has experienced strong demand in 2022 thanks to the popularity of its mainstream trucks, which include the GMC Sierra 1500, GMC Sierra HD and GMC Canyon, as well as the full-size GMC Yukon and Yukon XL SUVs. GMC sales fell 13.7 percent year-over-year last quarter, although this sales slump is mainly attributed to a lack of inventory due to production setbacks, the semiconductor chip shortage and other components shortages.
Sales of the GMC Terrain compact crossover were up significantly in Q2, soaring 37 percent to nearly 22,758 units, while Savana sales climbed 25 percent to 6,803 units and Canyon sales rose 40 percent to 7,501 units.
Incentive spending at GMC was lower than the GM-wide average of $1,705 per vehicle. In its analysis, Cox Automotive said “robust demand,” at GM allowed it to slash incentive spending across all four of its brands in Q2, helping to drive its average transaction prices higher. Last quarter also marked the first time quarterly incentive spending at GM was below $2,000 in recent history, Cox Automotive said.
Low inventory and sustained high demand leave little reason for GMC, and GM as a whole for that matter, to offer generous incentives on most models. At the moment, many GMC dealers can easily sell out of their available stock without having to entice customers with steep discounts.