Car Incentives Likely to Increase in 2011
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.
My Recommendation for Car ShoppersTrueCar No-Haggle, CarsDirect, and NADAGuides 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