Automakers typically offer incentives when interest rates rise, but they aren't doing so today and they aren't likely to do so next year, according to a J.D. Power expert.
J.D. Power expects automaker incentive spending to remain below 5 percent of sticker through about the second half of 2024, Kristen Lanzavecchia, director of industry solutions for J.D. Power, said at the Auto Finance Summit on Oct. 28. Sweeteners are forecast to increase after that, she said.
Incentives used to represent 10 percent of the sticker price, fellow panelist Jeremy Robb, Cox Automotive senior director of market insights and business solutions, said at the summit. Now, they are 2 percent, he said.