NADA Incentive Analysis and Impact


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NADA Incentive Analysis and Impact

  1. 1. Q4 2013 NADA Used Vehicle Price Report: Incentive Analysis and Impact AT A GLANCE The factors that drove incentive spending to historic highs in the early 2000s How current conditions and spending levels compare to the past How various types of incentives (i.e., cash, finance and lease) directly or indirectly affect used vehicle prices Dollar estimates of the impact on used prices by incentive types 866.975.6232 |
  2. 2. NADA Used Vehicle Price Report: Incentive Analysis and Impact The role of incentives in the automobile business has changed considerably over the past 50 years. As in most retail industries, they were originally used as a tactic to help move stale product. In other words, incentives facilitated the sale of outgoing model year units and models nearing the end of their lifecycles, or they helped address supply-and-demand imbalances due to production miscalculations. In the latter half of the 1990s, however, the use of incentives became increasingly strategic  meaning they played more of a lead role in influencing sales for —  all new models. From 1994 to 2004, the average amount spent on incentives grew from approximately $675 per unit to a record-high $2,932 — an increase of 334%. The rise in incentive spending had a profound effect on new vehicle sales over that period, helping deliveries reach an all-time high of 17.3 million units in 2000. But while incentives helped achieve record new sales levels, they also helped depress used vehicle values. By 2004, used vehicles as a commodity had lost significant ground with their prices down significantly. By the middle of the 2000s, manufacturers began to pay closer attention to the circular relationship between new vehicle promotions and used vehicle retention. In fact, in the years leading up to the Great Recession, they made a concerted effort to reduce their use of incentives. New vehicle incentives have steadily declined since the end of the recession, but an expected leveling off of new sales growth combined with an increase in production capacity over the next few years raises the risk that manufacturers will again revert to an over-dependency on incentives. NADA does expect incentives to rise modestly in the near term, but we don’t foresee a return to destructive levels of the past. Our latest report explores how the industry has used incentives over the past 20 years and what’s been trending in incentive spending — and provides estimates as to how incentives impact used vehicle prices. 866.975.6232 | 2
  3. 3. NADA Used Vehicle Price Report: Incentive Analysis and Impact A BRIEF HISTORY For the better part of the 20th century, the only consistent new vehicle sales incentive available was in the form of bargaining with your local dealer. If the customer was an effective bargainer, the new car price would lower, the dealer profit margin would shrink, and that was the extent of the deal. By 1970, manufacturers offered more and more package discounts to correct for inaccuracies in production planning. By the 1980s, stair-step programs were beginning to have an influence — a minimal one, by current standards — on the sales process. In the stair-step approach, original equipment manufacturers (OEMs) began to incentivize dealers to hit various volume quotas on slow-moving inventory. But dealers used these incentives inconsistently. All of them labored to increase sales volume, but some put the money in the bank, while others allowed it to flow through to the customer. Believing the latter action was more likely to increase sales volume, manufacturers offered cash discounts and low-rate financing directly to consumers. Incentives gradually became more public, standardized and ingrained in the sales process. ANNUAL U.S. NEW VEHICLE SALES: 1990–2002 19.0 Number of Sales (millions) 19.0 17.0 16.0 Sales grow by 8.7% Recession: Jul. '90– Mar. '91; sales decline by 11% Recession: Mar.–Nov. '01; sales decline by 1.3% Sales recover by an average of 6.9% p / yr 15.0 14.0 13.0 12.0 11.0 10.0 1990 1991 1992 1993 1994 Source: U.S. Bureau of Economic Analysis 866.975.6232 | 1995 1996 1997 Calendar Year 1998 1999 2000 2001 2002 Fast-forward to 1999, and the United States was in the midst of one of the longest-running periods of economic prosperity in its history. Fostered in large part by the Internet boom, the U.S. economy expanded by an average annual rate of nearly 4.9%, the Dow Jones Industrial Average rose by more than 21%, and new car sales exploded by 8.7% to a then-record 16.9 million units. Sales grew by another 2.8% in 2000 to reach what stands as an all-time high of 17.3 million units. 3
  4. 4. NADA Used Vehicle Price Report: Incentive Analysis and Impact Sales were hitting records, but so was incentive spending. According to CNW Research, total incentive spending grew by 31% from 1996 to 2000, and was more than 133% higher than it was at the beginning of the previous decade. By the beginning of 2001, the industry’s biggest spenders largely comprised domestic brands. Autodata™ data show that in January 2001, Oldsmobile, Jeep and Dodge were spending a combined average of $2,554 per unit on incentives, and Ford and Chevrolet averaged $1,324 and $1,144 per unit, respectively. By comparison, Toyota and Honda were spending $717 and $282 per unit on incentives. Not coincidentally, the era also marked a tipping point in domestic market share. WardsAuto data reveal that after reaching 88.7% in 1996, domestic OEMs began to steadily cede share to their import counterparts. So, despite the economic growth of the 1990s, domestic manufacturers felt compelled to extend discounts due to increasing competitive pressure. Once 2001 arrived and the 9/11 attacks occurred, many feared a cataclysmic drop in sales. Manufacturers pushed discounts up to an average of $2,000 in October of that year — an increase of 36% from the year’s nine-month average of $1,473. The ploy worked. While consumer spending plunged overall, 0% financing and large cash discounts led to a 34% surge in the annual new vehicle sales rate. Consumers were so taken by incentive promotions, in fact, sales that would have taken place in the first quarter of 2002 were pulled ahead to the fourth quarter of 2001. Incentives never returned to pre-9/11 levels. The amount of money allocated to incentives nearly doubled in the years that followed, moving from an average of $1,547 per unit in 2001 to an average of $2,932 per unit in 2004. 866.975.6232 | 4
  5. 5. NADA Used Vehicle Price Report: Incentive Analysis and Impact THE REVERSAL By 2004, used vehicle prices had fallen by more than 10% from the level recorded five years earlier, and used vehicles as a commodity had lost pricing ground to all other products by nearly a quarter. Banks, many OEMs and industry analysts were convinced that incentives — whether used to offset overproduction or product deficiencies, or to gain competitive advantages — were the primary reason for the ongoing decline in used vehicle prices. INCENTIVES AND USED VEHICLE PRICES The change in manufacturer incentives and used vehicle prices from 1995–2004. Used prices are for units up to 8 years in age. Used Vehicle Prices Incentives 400 Index Value (Jan-95 = 100) 350 Incentive spending explodes in the late-’90s ... 300 250 200 ... while used vehicle prices decline. 150 100 Source: CNW Research, NADA 4 n0 Ja 3 n0 Ja 2 n0 Ja 1 n0 Ja 0 n0 Ja 9 n9 Ja 8 n9 Ja 7 n9 Ja 6 n9 Ja Ja n9 5 50 Calendar Year In a mixed fashion, all manufacturers started to understand this issue in the years leading up to the Great Recession. Domestic manufacturers remained saddled with constraining legacy obligations and overcapacity, but began to subtly reduce their dependency on incentives — particularly cash discounts. In 2006, GM opted to institute a pricing strategy that essentially lowered manufacturer’s suggested retail prices (MSRPs) to better align them with actual 866.975.6232 | 5
  6. 6. NADA Used Vehicle Price Report: Incentive Analysis and Impact transaction prices. Paul Ballew, GM’s then-executive director of global market and industry analysis, stated that the move was made “because incentives had gotten too complex, and there was a lot of noise out there in the marketplace, and it was hard for consumers to understand.” He went on to add that GM’s pricing strategy would be “simple pricing, transparent pricing and simple messaging.” This marked a turning point for domestic manufacturers. Instead of offsetting unrealistic MSRPs with substantial rebates, they would attempt to set more reasonable retail prices and reduce the amount allocated to incentives. There was a twofold benefit to this: Consumers would become less inclined to expect gargantuan incentives, and manufacturers would realize an improvement in residual values, thanks to MSRPs being closer to actual transaction prices. By 2007, Chevrolet was spending roughly 40% below 2004 levels on total and cash incentives, while spending at Ford and Chrysler had essentially flattened out. At an industry level, total incentive spending reached an average of $2,631 in 2007, down some 10% from 2004’s figure. More significantly, the amount spent on customer cash fell from an average of $1,860 to $1,306 over the period, a decline of nearly 30%. Spending ticked up during the recession, but this was in response to the economic malaise gripping the country and not a reversion to old habits. The bankruptcies of GM and Chrysler in 2009, along with a substantial restructuring at Ford, allowed domestic manufacturers to reduce the scale of incentives use even further. 866.975.6232 | 6
  7. 7. NADA Used Vehicle Price Report: Incentive Analysis and Impact POST-RECESSION IMPROVEMENTS Domestic manufacturers exited the recession with the flexibility to better compete across an entire product lineup, while a substantial 8% chunk had been removed from North American CONSUMER PRICE INDEX: NEW VEHICLES production capacity over the course All consumers, U.S. city average. Seasonally adjusted. of 2007 to 2010. It took nearly 16 years for new vehicle prices to return to levels recorded in 1996. Index Value (1982–84 = 100) 150.0 145.0 140.0 135.0 130.0 13 12 n- n- Ja 11 Ja 10 n- 09 n- Ja Ja 08 n- n- Ja 07 n- Ja 06 n- Ja 05 Ja 04 nJa n- 03 Source: U.S. Bureau of Labor Statistics Ja 02 nJa 01 nJa 00 nJa 99 nJa 98 Ja n- 97 n- Ja n- nJa Ja 96 125.0 Month AVERAGE INCENTIVE SPENDING, BY INCENTIVE TYPE Annual change in incentive spending, 2007 vs. 2013 YTD (through September). Avg. per Unit in 2007 Avg. per Unit in 2013 Average Spent per Unit $4,500 $3,500 $2,500 $1,500 $500 Total Incentive Dealer Cash Incentive Type Source: Autodata 866.975.6232 Finance Subvention Lease Subvention | Customer Cash These changes, along with dramatic improvements in product design and quality, have allowed new vehicle transaction prices to trend higher over the past few years. In 2008, prices were nearly 7% below the level recorded in 1996, including incentives; over the same period, the price of other goods had increased by nearly 40%. Starting in 2009, net new vehicle prices began an increase that still continues  the —  average retail sale price of new vehicles over the first half of 2013 was $31,321, up 9% from 2007’s average of $28,797. Incentive spending has fallen as new vehicle prices have grown. The average discount per unit stood at $2,781 in 2009; through September of this year, the average was $2,543  a —  decline of nearly 9%. Spending is back to pre-recession levels for both finance and lease subvention, but consumer cash discounts are down 7
  8. 8. NADA Used Vehicle Price Report: Incentive Analysis and Impact by 9.3% from 2007’s level. As we’ll discuss in the next section, the reduced reliance on cash discounts is an especially positive change from a used vehicle retention perspective, as direct cash rebates have a highly corrosive effect on used vehicle prices. THE IMPACT OF INCENTIVES We’ve discussed how incentives have been used in the auto sector, with largely qualitative evidence of their impact on used vehicle prices. In the following section, we’ll describe the specific ways incentives impact used vehicle prices and provide a quantitative assessment of the relationship between used prices and various types of incentives. Incentives impact used vehicle prices in three distinct ways: 1. y reducing the current new vehicle price, they reduce prices of related B older vehicles. 2. hey also reduce the starting point of the current model used vehicle T depreciation curve, resulting in lower prices in the future. 3. hey reduce the value of the brand by stimulating price-based “push” T purchases instead of product-based “pull” purchases. SIMPLE MARKET IMPACT The first two impacts are straightforward. In the first case, demand for a used Jeep Grand Cherokee or Toyota Corolla is directly related to the price of a new Grand Cherokee or Corolla, and incentives push down prices of all related vehicles currently selling in the marketplace, both new and used. In the second case, the price of a vehicle today is very much a function of the price of the same vehicle yesterday, because yesterday’s price is a key reference 866.975.6232 | 8
  9. 9. NADA Used Vehicle Price Report: Incentive Analysis and Impact point for today’s buyers (along with current prices for similar vehicles). So the legacy of a steep new car discount will continue to be present on a used vehicle as it ages. BRAND IMPACT — INCENTIVES BECOME THE MESSAGE The third impact requires a bit more explanation, but it’s altogether more important. Manufacturers communicate two possible messages about their brands to consumers: “We make great products” or “We make bargains.” The first message builds brand value — additional money consumers will pay for a fixed quantity of goods simply because those goods are associated with a specific brand name they trust. The second message can help stimulate additional sales, but over time it can also detract from brand perception and, thus, value. As discussed earlier, in the past decade there was a sharp contrast between the messages of some brands — some product-focused and others price-focused. Product-focused brands interacted with consumers through a discussion of its products — quality, design, features, safety and resale values. All too frequently, price-focused brands interacted with consumers by loudly communicating the extent of their discounts and bargains. The differing approaches led to profound differences in used vehicle retention. Ten years ago, the gap in value between product-focused and price-focused brands was roughly 30%. This means that with controlling for differences in equipment, horsepower and other performance measurements, the design, and the current method of going to market (pricing, incentives and channels), one could expect vehicles from price-focused brands to sell for 30% less than ones from product-focused counterparts. 866.975.6232 | 9
  10. 10. NADA Used Vehicle Price Report: Incentive Analysis and Impact Brand value is very difficult to increase and relatively easy to decrease. Hyundai and Kia have realized dramatic improvements in brand value in the last 10 years, but only through huge, coordinated, passionate and expensive efforts to track down and eliminate defects — and to reflect this improvement in quality with dramatically improved design and advertising. INCENTIVES AND USED VEHICLE PRICES — A MEASURABLE IMPACT NADA employs a statistical model to estimate the price of a used vehicle as a function of all of its key characteristics and the sales strategy used (incentive use, fleet and lease penetration). We then can explore different questions, including the effect of incentive spending by type. Specifically, we look at consumer cash, dealer cash, and finance and lease subvention on used vehicle prices.1 TOTAL INCENTIVE VEHICLE PRICES Using this model, NADA estimates that $1,000 in combined incentive spending will reduce used vehicle prices by averages ranging from $563 for a one-yearold vehicle to $133 for an eight-year-old vehicle. This “pass-through effect” means incentives continue to exert a sizable negative influence on prices far removed from more recent SPENDING AND USED model years. The estimated impact of $1,000 in combined incentives on used vehicle prices, by vehicle age. Impact on Used Vehicle Prices $0 ($100) ($165) ($200) ($133) ($203) ($249) ($300) ($319) ($400) ($381) ($500) ($600) ($474) ($563) 12 24 36 60 Vehicle Age (months) Source: NADA 1 866.975.6232 48 | 72 84 96 Assuming market conditions — the economy, time of year, level of supply, etc.  and MSRPs remain —  constant, if a manufacturer were to place $1,000 worth of incentives on a model that previously had no discounts, we could expect the price of a one-year-old used version of the same model to fall by $563, while the price of a three-year-old model would fall by $381. A large class of incentives are hidden from the customer, but often reach the customer through dealer advertising. These include stair-step bonuses, dealer holdback, floor plan support, advertising support and a variety of other bonus plans. Since dealers can use and communicate these incentives in a variety of ways, their impact on used vehicle prices is much less certain. 10
  11. 11. NADA Used Vehicle Price Report: Incentive Analysis and Impact Note that NADA’s estimates for total spending on incentives are based on different types of incentives employed by manufacturers over the years. As such, estimates are not based on a standardized blend of incentive types (e.g., a consistent mix of consumer cash and finance subvention). NADA believes that as the level of discounting increases, so too does the rate of impact on used prices (meaning the relationship between the two is slightly non-linear). For example, we estimate that increasing total incentive spending from $1,000 to $2,000 would reduce 12-month-old vehicle prices by $607, while increasing incentive spending from $2,000 to $3,000 would reduce prices by an additional $651. This is because the influence of incentives on shopper behavior becomes more significant as they get higher. There are some exceptions. In cases where a $6,000 incentive available for many months in a row increases to $6,500, we would expect less impact. We would also expect the initial use of cash incentives for a brand that previously did not use them to be significantly impactful. Not all incentives resonate equally with consumers, which means they don't have equal impact on used prices, either. For example, cash incentives convey a simple and potent message — an easily understood quantity would be “$7,000 off!” But most finance incentives are more removed from the understood quantity — for example, “2.9% financing!” This requires a good deal of math that most people do not do. Most lease incentives are still removed from the understood quantity in this way. Customer cash has an easily understood relationship with used prices; a oneyear-old used vehicle must carry a price below a new vehicle less its cash discount for it to logically be considered during the purchase process. That’s why customer cash incentives have the greatest negative influence on used vehicle prices. NADA estimates that a $1,000 cash incentive on a new vehicle reduces the price of a one-year-old used vehicle by $642. This compares to estimates of $436, $165 and $89 for dealer cash, finance incentives and lease incentives, respectively.2 2 866.975.6232 | I t’s important to note that these estimates do not include the long-term impact to brand value, which as discussed earlier can be dramatic in cases where very large incentives are used over a long period of time. 11
  12. 12. NADA Used Vehicle Price Report: Incentive Analysis and Impact While direct dealer cash has a similar impact to customer cash, this form of discount comprises a relatively small portion of overall incentives. As far as finance subvention is concerned, the immediate impact to used vehicle prices isn’t as harmful as cash incentives, but over time they can indirectly inflict damage by reducing an OEM’s profitability, and thus their ability to reinvest in product development. Similar to a cash discount, a 0% financing offering is an easily understood number — it means no interest and requires no computation. But in most cases, a consumer must have an excellent credit score to qualify for this promotional rate. If all consumers were able to achieve this level of discount, the impact of financing on used prices would be more substantial. ESTIMATED IMPACT OF INCENTIVES ON USED VEHICLE PRICES: BY INCENTIVE TYPE The estimated impact of $1,000 per incentive type on used vehicle prices, by vehicle age. Customer Cash Dealer Cash Finance Support Lease Support Impact on Used Vehicle Prices $0 ($100) ($200) ($300) ($400) ($500) ($600) ($700) Source: NADA 12 24 36 48 60 72 84 96 Vehicle Age (months) Under the right conditions, heavily subsidized lease payments — think $199 per month — would have a more severe immediate impact on used vehicle prices than what NADA currently estimates. But for this to occur, down payment 866.975.6232 | 12
  13. 13. NADA Used Vehicle Price Report: Incentive Analysis and Impact and credit score requirements would have to be low enough to materially shift demand away from the used market over to the new one. This is not the case right now, as Experian Automotive data show that the average new lease credit score stood at 760 in the second quarter of 2013, well above the average used score of 660. Longer-term, inflated lease subsidies can have a profound impact on used prices. Increasing the quantity of units demanded  and subsequently —  leased — complicates residual estimation, as higher volumes of units entering the used vehicle market over a concentrated period of time must be taken into account. Should forecasted residuals be grossly overestimated, consumers and dealers will be unlikely to purchase a vehicle at lease-end (because positive equity will be nonexistent). This will inflate the number of units returning to the market. A toxic combination of these events occurred on a wide scale back in the late 1990s and early 2000s. Overestimated lease residuals and loose credit standards pushed consumer lease penetration rates above 30% at times between 1996 and 1997 (today’s rates are around 20%). The resulting fallout cost the industry billions of dollars, caused numerous banks to cease leasing altogether and contributed to the used vehicle price decline. INCENTIVES OUTLOOK While total incentive spending currently remains below pre-recession levels, it has ticked up by 2% this year. Even more noteworthy, customer cash spending has grown by 8%, while slower new sales growth and fiercer competition give reason to believe that spending will increase even more over the next few years. However, there’s a significant difference between the current level of spending and what was observed through the better part of the past decade. Total incentive spending remains 13% below 2004 levels, while customer cash discounts are 36% lower. In addition, it is now firmly integrated into the philosophy of all manufacturers that excessive incentives are something to avoid. 866.975.6232 | 13
  14. 14. NADA Used Vehicle Price Report: Incentive Analysis and Impact It is certainly possible for this philosophy to change back, but manufacturers continue to state publicly that profitability will not be sacrificed at the expense of chasing market share — rhetoric domestic manufacturers can finally live up to, thanks to greater production flexibility. That being said, production capacity is set to grow significantly over the next few years. LMC Automotive predicts that North American production will grow from 17.7 million units this year to more than 20 million units in 2016  an —  increase of 13.5%. This would place capacity well above the 19.1 million unit level reached back in 2004 and 2005. With growth primarily coming from import manufacturers, some of the added capacity will go toward reducing the number of units imported to North America and a portion will be destined for countries outside of the United States. However, a large percentage of the additional 1.4 million units of capacity is intended to support an ongoing rise in new vehicle sales domestically. LMC estimates new vehicle sales will increase by 7.3% over the next three years, improving from 15.6 million units in 2013 to 16.7 million units in 2016. NORTH AMERICAN AUTO CAPACITY AND U.S. LIGHT-DUTY SALES Actual and forecast. N.A. Capacity U.S. Sales 20,000,000 19,000,000 18,000,000 Volume 17,000,000 16,000,000 15,000,000 14,000,000 13,000,000 12,000,000 11,000,000 Source: LMC Automotive 866.975.6232 | t. 20 16 Es t. 20 15 Es t. 20 14 Es t. 20 13 Es 12 20 20 11 10,000,000 Calendar Year 14
  15. 15. NADA Used Vehicle Price Report: Incentive Analysis and Impact Should demand not live up to expectations, manufacturers will face a tough choice between sacrificing capacity utilization to match demand or keeping factories humming — and rely on higher incentives to move excess product. Production concerns noted, barring a material decline in economic growth, NADA believes manufacturers will maintain their current approach to incentives — at least in the near term — due to lessons learned as well as the growth achieved in both new vehicle prices and used vehicle retention over the past few years. OEMs will likely protect these advances by continuing to focus discount strategy around finance and lease subvention rather than customer or dealer cash. While we do expect to see incentive spending increase moderately in 2014, the aforementioned discount mix and a commensurate rise in MSRPs will keep new vehicle transaction prices from falling. This in turn will mitigate downward pressure to used vehicle prices. 866.975.6232 | 15
  16. 16. NADA Used Vehicle Price Report: Incentive Analysis and Impact CONCLUSION It’s much more likely that the industry will revert to an over-dependency on incentives than that spending will return to the low levels of the early 1990s. However, the hard lessons of the past and the extraordinary amount of time, cost and effort it has taken to rebuild new and used vehicle pricing power will hopefully minimize the risk of this occurring any time soon. The past few years have proven that by adopting a longer-term view (i.e., a dedicated approach to producing high-quality, desirable vehicles rather than simple commodities sold on price alone), manufacturers can profitably sell new vehicles and improve used value retention, with the latter point stimulating both future lease business and providing a better cost of ownership experience for customers. Today, manufacturers as a whole are building what is arguably their best product ever, and as we’ve discussed, there’s no better way to build brand value — and thus new and used pricing power — than through the creation of great product. Hitting a home run with product is not easy, and even when done successfully, the benefits can quickly be wasted without a prudent approach to incentives. As we’ve shown, value preservation is as much a function of the type of incentive used as it is the total amount spent. Although cash incentives have a more profound and immediate impact on used vehicle prices, the negative effect resulting from the unwise use of finance and lease promotions can be just as severe under the right conditions. Understanding this, the industry at large can better assess the risk posed to used vehicle prices by various incentive types, while manufacturers can use NADA’s findings to help calibrate incentive programs to promote new vehicle sales without unduly threatening used price retention. 866.975.6232 | 16
  17. 17. About NADA NADA Used Car Guide Since 1933, NADA Used Car Guide has earned its reputation as the leading provider of marketreflective vehicle valuation products, services and information to businesses throughout the United States and worldwide. NADA collects and analyzes more than one million combined wholesale and retail automotive-related transaction prices per month. Its guidebooks, auction data, analysis and data solutions offer automotive, financial, insurance and government professionals the timely information and reliable solutions they need to make better business decisions. Visit NADA Consulting Services NADA’s market intelligence team leverages a database of nearly 200 million automotive transactions and more than 100 economic and automotive market-related series to describe the factors driving current trends to help industry stakeholders make more informed decisions. Analyzing data at both wholesale and retail levels, the team continuously provides content that is both useful and usable to the automotive industry, financial institutions, businesses and consumers. Complemented by NADA’s analytics team, which maintains and advances NADA’s internal forecasting models and develops customized forecasting solutions for automotive clients, the market intelligence team is responsible for publishing original content in the form of blogs, white papers and market reports. Throughout every piece of content, the team goes beyond what is happening in the automotive industry to confidently answer why it is happening and how it will impact the market in the future. For more information on this white paper or about NADA Consulting Services, contact: Jonathan Banks Senior Director Vehicle Analysis Analytics | Allyson Toolan Manager Public Relations 703.749.4709 866.975.6232 Larry Dixon Senior Manager Market Intelligence 703.749.4713 703.821.7165 17
  18. 18. Additional Resources Used Car Truck Blog Written and managed by the market intelligence team, the Used Car Truck Blog analyzes market data, lends insight into industry trends and highlights relevant events. Join the conversation at Commercial Truck Blog Updated twice per week by Senior Analyst Chris Visser, the Commercial Truck Blog provides real-time analysis of incoming sales data from the industry’s leading used truck sales database. Join the conversation at Guidelines Updated monthly with a robust data set from various industry sources and NADA’s own propriety analytical tool, Guidelines provides the insight needed to make decisions in today’s market. Sign up to receive Guidelines monthly at White Papers Q4 2013 NADA Used Vehicle Price Report: Incentive Analysis and Impact NADA’s white papers and special reports aim to inform industry stakeholders on AT A GLANCE The factors that drove incentive spending to historic highs in the early 2000s current and expected used vehicle price movement to better maximize today’s How current conditions and spending levels compare to the past How various types of incentives (i.e., cash, finance and lease) directly or indirectly affect used vehicle prices Dollar estimates of the impact on used prices by incentive types 866.975.6232 | opportunities and manage tomorrow’s risk. Sign up to receive White Papers quarterly at Read our blogs 866.975.6232 | Follow us on Twitter @NADAUsedCarGde Find us on Facebook Watch us on YouTube 18