Leave it to research maven Edmunds.com to find the silver lining in the cloud that has been September and October domestic auto sales. Despite slow sales, the implementation of value pricing programs has dramatically lowered the average discount percentage, or in other words, the average amount of money automakers made on vehicle sales since the start of value pricing has increased.
Excerpts from the release after the jump.
The average discount percentage is the difference, expressed as a
percentage, between the average manufacturer?s suggested retail price (MSRP),
and the net price, which is defined as the transaction price after all
available incentives are taken into account. Comparing September 2005 to
September 2004, Edmunds.com found that GM experienced the biggest drop in its
discount rate, from 23.1 percent to 16.4 percent. Ford saw a decline from
21.4 percent to 17.4 percent, and Chrysler?s discount percentage decreased
from 19.4 percent to 17.5. The discount rates for the major Japanese
manufacturers were virtually unchanged.
...
General Motor?s average days-to-turn, which measures the average number of
days it takes a dealer to sell a new vehicle after it arrives at the lot, also
declined dramatically compared to the same period last year, down from 97 days
to 65 days. Ford?s days-to-turn was down to 90 days in September 2005
compared to 101 days in September 2004, and Chrysler?s days-to-turn was down
to 84 days from 90 days.
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