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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.

Edmunds.com
Source: Edmunds.com
Edmunds.com

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:

Compact Cars

Compact Cars

2012 Honda Insight
Source: Edmunds.com
2012 Honda Insight

Avg. discount from MSRP: $1,143

Model with smallest discount: Honda Insight
($22 off of MSRP of $21,263)

Midsize Cars

Midsize Cars

2012 Subaru Outback
Source: Edmunds.com
2012 Subaru Outback

Avg. discount from MSRP: $2,397

Model with smallest discount: Subaru Outback
($353 off of MSRP of $29,315)

Compact Cross-Over SUV's

Compact Cross-Over SUV’s

2012 Honda CR-V
Source: Edmunds.com
2012 Honda CR-V

Avg. discount from MSRP: $1,742

Model with smallest discount: Honda CR-V
($169 off of MSRP of $26,495)

Midsize Cross-Over SUVS's

Midsize Cross-Over SUVS’s

2012 Subaru Tribeca
Source: Edmunds.com
2012 Subaru Tribeca



Avg discount from MSRP: $1,957

Model with smallest discount: Subaru Tribeca
($363 off of MSRP of $35,865)

Entry Level Luxury Cars

Entry Level Luxury Cars

2012 Volvo C30
Source: Edmunds.com
2012 Volvo C30

Avg. discount from MSRP; $3,210

Model with smallest discount: Volvo C30
($583 off of MSRP of $32,899)

Entry Level Luxury SUV's

Entry Level Luxury SUV's

2012 Range Rover Evoque
Source: Edmunds.com
2012 Range Rover Evoque

Avg. discount from MSRP: $1,881

Model with smallest discount: Range Rover Evoque
($191 off of $57,740)

Follow Phil LeBeau on Twitter: @Lebeaucarnews