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.
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