Honda Incentives Hit Record High,
Toyota May Follow
According to Edmunds.com, Honda spent an average of $1,686 on incentives for every car sold in June.
This was the third month in a row where Honda raised incentives spending with last month being a record high
On the flip-side, domestic manufacturers such as GM and Chrysler may be cutting incentives spending in future months due to a decrease in production.
Toyota, on the other hand, is in a tough situation which may force it to follow Honda's lead and increase incentives.
Toyota spent an average of $1,362 on incentives per vehicle sold in June. We predict this figure will creep up in the coming months.
Toyota built several manufacturing plants in the US over the last few years on the false assumption sales would be healthy. That hasn't turned out to be the case.
Unlike GM and Chrysler, Toyota can't just shut down these plants. They don't want to lay off their workers since that would ruin Toyota's image as a generous US employer.
So it looks like Toyota is going to be producing a lot more cars than it can sell. The only way to move these cars is to raise incentives. Look out for higher rebates and better financing deals from Toyota over the next several months.
My Recommendation for Car ShoppersTrueCar No-Haggle, Edmunds Price Promise, and 1-800 Car Show are the quickest way to see the lowest car prices in your area. These sites show you no-haggle prices from dealers closest to you - and the deals are usually really good. This should be the first step you take when negotiating your car price. Follow this up with my checklist to make sure you squeeze out every last bit of savings.
California Residents - Important:There is a new online car buying service called Roadster, available only to California residents, which I highly recommend you try - especially if you hate the stress of haggling with a car salesman. They provide an expert concierge who negotiates the price of the car and delivers it to your home with zero hassle - you never have to interact with a dealership. Here is my in-depth review of Roadster and why I recommend it.
- Gregg Fidan
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About: Gregg Fidan
Gregg Fidan + is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.
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