“Manufacturers are leaning harder on discounts to keep buyers in the market. Average incentive spending per vehicle is trending towards $3,217, a 12.7% increase from a year ago. Part of that jump reflects tariff dynamics last year, since several OEMs made unseasonal pullbacks in incentive spending last June as they cut discounts precautionarily to offset tariff costs,” said King.
• Incentives as a percentage of MSRP are expected to hit 6.2% in June, up 0.6 percentage points from June 2025.
• For non EVs, average incentive spending per vehicle is trending towards $2,970, an 18.6% increase from a year ago.
• Incentive spending on EVs remains materially higher, expected to reach $9,824 per unit, up 3.1% from last year, which continues to underscore the role of discounting in supporting demand for electric vehicles.”
• Consumers are using longer loan terms to manage monthly payment affordability. Accordingly, 13.6% of loans now have terms of 84 months or longer, to help fill in part of the affordability gap.