GM May Offer Huge Incentives Soon
General Motors ended some popular cash and leasing incentives early this month and its retail sales are down sharply as a result, according to dealers and industry analysts.
GM is now in a tough position - they don't want to go back to the days when every car maker was offering huge incentives to keep sales strong, but now they see that sales are suffering and may decide to kick off another incentives war in order to increase market share.
GM's U.S. market share stood at 19 percent in the first 15 days of March, down from 21.5 percent for all of February when it was offering $1,000 GM loyalty cash and lease pull-ahead deals.
One Chevrolet dealer said that without loyalty cash and lease pull-forwards, his sales have dropped 25 to 35 percent from February.
Another Chevrolet dealer said losing the loyalty cash and lease deals hurt sales momentum.
It will be interesting to see what GM decides to do with incentives next month - we could possibly see a big increase in deals over the coming months so stay tuned.
My Recommendation for Car ShoppersTrueCar, Edmunds, 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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