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Car Incentives Likely to Increase in 2011

February 10, 2011

Incentives WarAn incentives war may be brewing - which is great news for car buyers.

Some analysts are accusing General Motors of boosting sales with cash rebates - something that car makers have tried to avoid over the past couple of years.

GM's 22% sales jump in January was largely fueled by incentives, analysts say.

On average, GM handed out $3,762 per vehicle last month - the highest incentive figure of any of the six largest automakers.

That's a 29% increase over the same month last year, and analysts are concerned that GM has begun pushing models on dealers with plans to move them with incentives.

GM, meanwhile, denies falling back into the rut of driving production with cash. The company saw Chevrolet sales jump 19 percent, while Buick and GMC enjoyed a 32-percent increase, all of which were driven largely by more free-flowing consumer credit.

We don't know yet whether other car makers will join the incentives bandwagon, but we'll keep you posted. 2011 may turn out to be a great year to buy a new car.

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My Recommendation for Car Shoppers


TrueCar No-Haggle and Edmunds Price Promise 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.
- Gregg Fidan

Gregg Fidan

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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