Car Incentives Are Terrible Right Now
The reason incentives are so low right now is due to supply and demand issues.
Inventories of new vehicles are lower due to brisker consumer demand thanks to a strengthening economy, and shortages resulting from the recent Japan disaster.
As a result, automakers don’t need to offer rich incentives.
The decrease in incentive spending runs across the board by manufacturers regardless of country of origin, with the exception of Korean automakers Hyundai and Kia - least affected by the Japan disasters and clearly trying to capitalize on the situation.
Domestic automakers showed the largest decline in incentives from March, averaging $2,683 per vehicle sold in April, down $398 from March.
Japanese automakers had the second largest decline with $1,696 per vehicle, down $236 from March.
So what can you do as a car buyer? Should you wait a few months in hopes of getting a better deal? Not necessarily - these supply and demand issues are predicted to last until at least the end of summer and possibly until the end of the year.
We just have to get used to the fact that car deals are not as good as they used to be. However, that doesn't mean it's impossible to get a great deal - make sure to use our car buying formula when you're ready to start negotiations and you'll do fine.
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow 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