David Lucas Incentive Quotations

I do think we're still going to experience higher incentives in upcoming months, especially as the 2003 model year comes to a close. Inventories are pretty high at this point. Even with strong incentives, there's a few too many vehicles in the market for the number of consumers buying.

With money spent on incentives, you can see results immediately. Advertising effectiveness is a much bigger question mark. I think you have seen a marketing budget realignment, with more money going toward incentives rather than advertising.

Our position is there are going to be aggressive incentives on 2004 pretty much right off the bat, ... The sentiment of customers is if they come in and it doesn't have a promotion on it, they'll wait until it comes on. And the automakers know that.

I'm sure the automakers are watching the same PIN data, and they will respond accordingly if it's really bad, ... Watch for new incentive promotions.