Buick incentive spending fell 76 percent in Q3 2022 on a year-over-year basis, amid high demand and tight inventories.
According a Cox Automotive report (PDF), the average incentive offered on a Buick vehicle sold in the U.S. in Q3 2022 stood at $964 per vehicle, which was down from $4,020 per vehicle in Q3 2021. The average incentive spending across all four of GM brands in the third quarter of this year stood at $1,353 per vehicle.
Accompanying the trend of ever-diminishing incentives, Buick sales decreased almost 28 percent from 39,299 units in Q3 2021 to 28523 units in Q3 2022.
Sales Results - Q3 2022 - USA - Buick
|MODEL||Q3 2022 / Q3 2021||Q3 2022||Q3 2021||YTD 2022 / YTD 2021||YTD 2022||YTD 2021|
Sales of the Buick Envision plummeted almost 35 percent to 7,307 units in Q3 2022. In fact, almost all Buick models saw a decrease in sales from Q3 2021, except the Buick Enclave, which saw sales rise a paltry four percent to 7,904 units sold in Q3 2022.
Overall, total GM Q3 2022 sales in the United States – which include Chevrolet, Buick, GMC and Cadillac – increased almost 25 percent to 555,580 units. That’s still far behind GM Q3 2020 sales of 665,192 units. The semiconductor chip shortage had yet to fully take hold in Q3 2020, which is the main reason behind the large year-over-year decrease in sales volume between Q3 2020 and Q3 2021.
In comparison, the average incentive spending for Cadillac stood at $2,086 per vehicle in Q3 2022, down almost 57 percent from the same time period last year. It was a similar scenario over at GMC and Chevy, with incentive spending averaging $1,048 and $1,416 per vehicle, down 64 percent and more than 48 percent, respectively, from Q3 2021.
Incentive spending will likely continue at its currently low pace for the rest of the year as inventory remains tight as a result of ongoing supply chain disruptions and material shortages. However, incentives should begin to climb as production constraints ease and the inventory situation improves.