Underlying the lament over the credit crisis is the simple truth
that borrowing costs have ratcheted up markedly. The more expensive
cost of funds would presumably make it more difficult for captives
to offer consumers aggressive incentives. The data below show
otherwise.
An analysis of Edmunds.com data found that total spending on auto
incentives has continued to increase steadily since the start of
the year. In May, the auto industry spending on incentives reached
$3.56bn, an increase of more than 45 per cent from the January 2008
total.
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