The Auto Industry’s Six Profit Drivers
Strip away the marketing and auto shows there is one ultimate goal for the automakers: make the most money possible on each automobile.
We hear all the time how one model is more profitable than another. But due to the varying costs that go into each model, it is tough to pinpoint profitability.
But one gauge of how much demand there is for a particular car, truck or SUV is to look at the average discount (off of MSRP) when it sells. The idea being that the greater the demand, the lower the incentive.
So we worked with Edmunds.com to crunch the latest data on transaction prices and incentives. The results show which models in each category are selling with the smallest discount. I’m not surprised to see to Subaru models since the automaker has been disciplined about not offering richer incentives. In fact, the average Subaru discount 6.03 percent of the sticker price. Compare that with the industry average discount of 10.96 percent.
Check out the list here:
Avg. discount from MSRP: $1,143
Model with smallest discount: Honda Insight
($22 off of MSRP of $21,263)