RealCarTips Logo

Car Manufacturers Increasing Incentives

September 1, 2016

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.

As always, if you're shopping for a new car right now, I recommend you use TrueCar and Edmunds Price Promise to quickly see the best deals being offered in your area.

My Recommendation for Car Shoppers

TrueCar, 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.
- Gregg Fidan

Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
  • Best Rebates, Incentives, and Lease Deals
  • Latest Car Buying Scams and Tricks
  • The Best & Worst Time to Buy a Car
  • Which Cars You Should Avoid
Enter Your Email Below

(Absolutely NO SPAM, easy to unsubscribe)
×

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.

Latest Weekly Car Buying Tips    RSS Feed

December 13, 2018
December 6, 2018
November 29, 2018
November 22, 2018
November 15, 2018
November 8, 2018
November 1, 2018
October 25, 2018
October 18, 2018
October 11, 2018
October 4, 2018
September 27, 2018
September 20, 2018
September 13, 2018
September 6, 2018
August 30, 2018
August 23, 2018
August 16, 2018
August 9, 2018
August 2, 2018
July 26, 2018
July 19, 2018
July 12, 2018
July 5, 2018
June 28, 2018
June 21, 2018
June 14, 2018
June 7, 2018
I welcome your car buying questions. Email Me and I'll be glad to answer them!