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.