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Big Incentives Were Behind the Best Selling Month in the US since 2006

Surprising or not, August 2014 was the best month for the automotive industry on over eight years. Over the last 30 days, in the US alone, 768,901 cars were sold, a record level close to the one last recorded in January 2006, before the whole crisis thing started worldwide. On a year-to-date basis, 5,478,774 units were sold, yet again an impressive number.
BMW Beverly Hills Dealership 1 photo
Photo: BMW
What caused this growth in the industry, though? Is the economy finally recovering? Are Americans more willing to spend on new cars during the summer? None at all. It’s all due to the huge incentives most car makers are offering.

BMW was the biggest spender in this regard. The average BMW car sold last month had around $4,912 of added kit or discount included. On the other hand, Audi and Mercedes-Benz follow suit but with less spending. In the case of the Stuttgart-based company, the cost of incentives went up to $4,189 on average while the four-circle company was even lower at $3,236.

Looking over the year-to-date growth, the Bavarians are actually offering 45% more incentives than last year, according to Autodata Corp, a New Jersey-based researcher. It might look like a lot but other companies are increasing their discounts by even more.

Audi, for example, increased its budged for incentives and discounts by 71 percent while the industry average sits at 18 percent overall which is still 5.5 percent more than last year.

Even so, BMW’s numbers are the highest in the industry, at least on American soil. What could be causing this? Well, one explanation could focus on the goal the company set for themselves to be achieved by the end of the year.

Part of the ONE strategy that covers the company’s plans to 2020, the sales aim is to reach the 2 million mark in 2014, 2 years before the initial schedule. It seems like BMW is determined to reach that goal this year, no matter what and the sales so far on a worldwide level have been in tune with their goal. The question that remains is whether they’ll be able to keep up the momentum, even with the added incentives.
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