The Internet Explorer web browser you are using is out of date and no longer supported by Microsoft (365) or by Auto Link. To ensure you are able to access all the features of Auto Link, we highly recommend switching to a modern web browser. Find a modern browser.

Incentives Will Increase

Posted on: 04/17/2017

Thomas King, vice president, Power Information Network U.S. OEM operations, speaking at the NADA/J.D. Power Automotive Forum in New York said he expects record U.S. auto sales again this year, for the third year in a row.

Although Mr. King expects record U.S. auto sales in 2017 it should be noted that through March, year-to-date sales are down 1.5%.

Mr. King expects the average incentive per new unit to surpass $4,000 for 2017. A huge increase occurred in the first quarter of 2017 when the average incentive jumped to $3,900 from $3,400 per unit last year.

“Incentives at industry level only ever rise, they basically never come back down … because everybody is chasing that short-term fix,” King said.

Higher incentives are certainly good news for the consumer and as dealer inventories grow larger the solution, in part, is to continue to increase incentives, particularly with cars that are not selling.

Thinking About Buying a Car?

Our Car Buying Service can help save you money on your vehicle purchase. Members have saved an average of $3,106 off MSRP on new vehicles.*

Learn more

* Between 7/1/16 and 9/30/16, the average estimated savings off MSRP presented by TrueCar Certified Dealers to users of TrueCar powered websites, based on users who configured virtual vehicles and who TrueCar identified as purchasing a new vehicle of the same make and model listed on the certificate from a Certified Dealer as of 10/31/2016, was $3,106. Your actual savings may vary based on multiple factors including the vehicle you select, region, dealer, and applicable vehicle specific manufacturer incentives which are subject to change. The Manufacturer's Suggested Retail Price ("MSRP") is determined by the manufacturer, and may not reflect the price at which vehicles are generally sold in the dealer's trade area as not all vehicles are sold at MSRP. Each dealer sets its own pricing. Your actual purchase price is negotiated between you and the dealer. TrueCar does not sell or lease motor vehicles.