Luxury brands are making dealer cash a bigger part of their incentive mix

Article by Christian A., on December 28, 2010

For 10 straight years, Lexus has been the top-selling U.S. luxury car brand, ahead of Mercedes-Benz and BMW. However, Lexus leads by a narrower margin in 2010.

For the first 11 months of the year, Lexus leads with sales of 201,769 – only 4,936 units ahead of BMW and 5,393 ahead of Mercedes, excluding Mercedes' Sprinter vans.

In December 2010, all three brands are making dealer cash a bigger part of their incentive mix. That's aside from the customer cash, low-interest financing on each model and huge lease-subsidy deals like a Mercedes C300 for $339 a month for 36 months.

Mercedes and BMW dealers get $10,000 or more cash on larger 2010 models, while Lexus is giving dealers up to $4,000 on the 2010 LS 600h L and LS 460.

Jesse Toprak, vice president of industry trends for TrueCar.com, says there's heavy usage of dealer cash in December 2010, but the financing and leasing deals that have run all year are “also moving the metal.”

In a bold move, BMW is also paying dealers $250 more for each unit, retroactively, if they achieve their fourth-quarter sales quota. Ted Datri, general manager of BMW of Dallas, has a quota of 473 units, amounting to about $120,000, a figure that Datri considers to be “quite a bit of money.” [via autonews - sub. required]

Topics: luxury car, sales, dealer

If you liked the article, share on:

Comments

Recommended

BMW has revealed that its i brand has partnered with TED in order to launch a worldwide search of unique ideas under the title “NextVisionaries.” This brand has long been...
by - April 28, 2017
Not a few agree that the Volkswagen Polo news a styling overhaul. While this supermini still looks good as it is now, the latest facelift was around three years. With...
by - April 27, 2017
They say that when the going gets tough, the tough get going. That’s what Harvey Payne did with his Chevrolet Bolt. Ever since he bought it, it had been experiencing...
by - April 27, 2017
What defines a coupe? Well, according to the dictionary, “it is a car with a fixed roof and two doors”. Ok, now that it is clear, when does one not...
by - April 27, 2017
Back in 2013 was when the first hot hatch was released, that was the original A45 by Mercedes-AMG, carrying a hand-built 2.0 liter M133 turbo mill. It was then then...
by - April 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries