Dealer incentives boost November sales amid affordability challenges

Holiday incentives boosted sales at dealerships, but affordability concerns and lower approvals challenged some market segments. Leading up to Black Friday, several OEMs offered incentives ranging from lowered APRs for 48- to 60-month terms and cash rebates in an effort to drive sales as vehicle prices remain high. KDW Automotive , a Glendale, Calif.-based Lexus dealership, offered 2.49% APR on some loans from Nov. 24 through Dec. 1, finance manager Michael Sigh told Auto Finance News . The “Thanksgiving special for the pricing [was] more aggressive than usual,” he said. The dealership sold 120 to 130 vehicles due to the low APR deal, he said. Overall sales were up year over year in November, he said, without giving specifics. Typically, sales rise 0.5% to 1% In November month compared to the prior year. Leavenworth, Kan.-based Morris Smith Auto Group , which sells Ford products, also saw a jump in sales in response to the OEM’s offer of 0% interest for 60 months, zero money down and no payments for 60 days offer, Morris Smith , dealer principal and owner, told AFN. He said customers called to confirm which vehicles were part of the promotion. “I sold new cars that I would not have sold had it not been for that 0% financing,” Smith said, noting that employees also purchased vehicles because of that incentive. Overall sales in November, however, are estimated to be flat or down from last year, he said. “At my store, specifically in Kansas City, we saw a decrease month over month,” Smith said, attributing it to consumers having limited funds for down payments ahead of the holidays. “Normally, on average, my sales volume is about 35 new [cars] a month; we decreased down to around 25 and then my used-car sales stayed about flat.” Delavan, Wis.-based Kunes Auto Group ran several promotions over Thanksgiving weekend and saw a 30% jump in sales compared with the prior weekend, Scott Kunes , chief operating officer and managing director, told AFN . Incentives included 0% APR for 60 months across most manufacturers that the dealership stocks, he said. “We haven’t seen widespread 0% offers in quite some time, and that’s always a strong motivator for new-car buyers,” he said. Kunes Auto also had promotions for used vehicles. “We ran a limited Black Friday doorbuster event at several stores, with a small number of deeply discounted vehicles alongside a broader selection under $10,000,” Kunes said. “These units are always clearly disclosed as needing some repair work, and they give budget-minded shoppers an accessible entry point." Meanwhile, subscription-to-own platform DriveItAway offered $50 off per week on its short-term leases for a limited time, a deal which garnered a lot of interest, Chief Executive John Possumato told AFN . But, he said, there “weren’t too many closings.” Still, the subprime consumer-focused mobility platform saw overall sales in November increase 20% YoY he said, but declined to provide unit sales. However, fewer consumers were approved for financing because they did not qualify for the income to payment ratio requirement. Future sales Dealers are also expecting a boost in sales in December but aren't expecting any increase to carry through to January. Lexus ’ “December to Remember” incentive program is like March Madness for the brand, Sigh said, noting that he expects a boost in sales. This year’s December to Remember event includes as low as 2.49% APR for 48 months on new 2025 and 2026 RX Gas as well as the 2025 IS, ES and UXh models and the 2026 NX Gas, RX Gas and TX Gas models, according to Lexus’ websites. December is also typically an above-average sales month at Morris Smith Auto, Smith said, adding that he is “optimistic as it relates to December” but is “up in the air about January.” However, Ford’s December incentives aren’t as good as November’s deals, he said, noting that while there is still a 0% APR offer, the $500 rebate was removed on most models, he said. Still, the “biggest challenge, from a consumer standpoint, is affordability,” Smith said. Even with 0% APR, “you [must] have a customer that can handle a$700, $800 payment as opposed to that $500 [or] $550 payment that has historically been the sweet spot for new [vehicles],” he said. DriveItAway is expecting an uptick in sales in 2026 as traditional financiers tighten their underwriting requirements, Possumato said. “We will be up as more consumers get rejected from conventional subprime financing,” he predicted. -- Additional reporting by Aidan Bush

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Dealer incentives boost November sales amid affordability challenges

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