In the direction of the tip of the yr, incentives for Chrysler, Dodge, Jeep and electrical automobiles are noticeable

It's no secret that automakers and dealers tend to outdo each other to offer the best incentives before the end of the year. However, this year's selling season is expected to be particularly competitive as sales slow, leading to greater urgency to destock.

According to a study by Kelley Blue Book, the respected vehicle valuation firm, total incentives for new vehicle sales increased 60% in October compared to a year ago.

And the trend is likely to continue.

“It’s the season when automakers make the final push for sales in 2024,” said Erin Keating, an analyst at Cox Automotive. “While some automakers are focused on managing production, many are likely to maintain or even increase their seasonal incentives to attract buyers.”

In October, eight automakers offered average incentive packages that accounted for more than 10% of the average transaction price (ATP). And all four of Stellantis' U.S. brands — Chrysler, Dodge, Jeep and Ram — offered incentive packages that were above the industry average.

Stellantis has stepped up its inventory clearance efforts as sales have fallen this year.

On the other hand, Porsche, Toyota, Land Rover and Cadillac continue to have the lowest stimulus spending, says Kelley Blue Book.

Meanwhile, electric vehicle (EV) incentives were much higher in October 2024 than the previous October, helping to make electric vehicles more affordable for consumers.

The average incentive package for an electric vehicle, including government incentives where applicable, was 13.7% of the average transaction price, up from 11.6% in September and more than double last year's level when incentives were 5.6% of the ATP.

On average, electric vehicle incentives this year were nearly 11% of ATP, well above the industry average.

But year-end deals aren't necessarily limited to new vehicles or even just incentives.

Car rental company Hertz, trying to get rid of an excess inventory of 30,000 used electric vehicles, has cut prices on popular models such as Teslas, Chevrolet Bolt electric vehicles and Hyundai Kona electric SUVs.

The clock also appears to be ticking on federal tax incentives for purchasing an electric vehicle: $7,500 for a new vehicle and $4,000 for a used vehicle.