Heading into the final 2 months of the year, we’ve got some records on the line for the U.S. automotive industry. Japanese automakers are battling for the titles of America’s best selling cars and crossovers, and the overall industry could record a third straight 17 million-unit year for the first time ever.
The overall industry this year has shown some restraint on incentives, but spending has steadily increased amid leveling average transaction prices. Expect incentive spending for the year to be up 11 percent through October to an average of $3,624 per vehicle, including a 5.4 percent increase last month to $100 above the yearly average. In addition to rising incentives and plateauing average transaction prices, automakers are struggling to move lagging 2017 inventory off dealer lots. There are reports that 72 percent of new vehicles sold last month were 2017 models, up from 60 percent the previous year.
Among the car companies to watch are Japan's largest automakers Toyota and Honda with its Civic and Camry. Toyota has increased its average incentive spend at an estimated 14 percent this year.
