Automakers driving banks from buoyant new car market in US

Jun 17 2014, 02:26 IST
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SummaryFinancing arms of car firms made half of all new US car loans in the first quarter

said the dealership could have added its own incentives on top of the company's promotions.

Honda, which was fifth in US auto sales in the first five months of the year, increased its average subsidy per leased car by 26% to $1,476 in that period from a year earlier, according to Edmunds.com.

Kinkade said the company is pleased with how its finance unit has paced its leasing to drive sales without too many of the cars later coming onto the used car market and depressing prices.

Others are liberally using subsidies, too. Toyota subsidised 92% of its US leases in its fiscal year ending in March, up from 82% the year before.

“We can get fairly aggressive with pricing or payments, depending on what we anticipate the used market to look like,” Toyota's Carey said.

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