Car Manufacturers Increasing Incentives
Car sales have been on fire for the past couple of years, hitting new records nearly every month - but that's about to change. Last month, sales were up only 1.1% compared to the same time last year, meaning the market is starting to plateau.
Normally, a market that is plateauing at record-levels would still be great for the industry, but car manufacturers are worried because most of them have planned for a growing market. The car industry spends billions of dollars preparing plants and tooling for predicted demand months down the road. All manufacturers are generally optimistic in their forecasts, but with a market that's not growing, that means there will be some big losers.
One of the biggest fears with manfacturers is having idle factories due to lower than expected demand, or inventories that start piling up. So, the easiest method to stir up demand is to offer incentives. And that's exactly what manufactures have started doing.
According to Automotive News, GM, Chrysler, and Ford spent an average of $655 more per vehicle on incentives last month compared to the year-ago period, while BMW's spending increased nearly $1,900. Volvo's incentive spending rose $840. The average new-car buyer is getting $337 more in incentives right now compared to a year ago.
This is all good news for car shoppers. This fall, you can expect some incredible deals on new cars, so if you've been waiting for a great opportunity, you're in luck. I'll be keeping an eye out on the best deals in the coming months, so make sure you're subscribed to my weekly newsletter.
My Recommendation for Car ShoppersTrueCar and Edmunds 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
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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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