What it often signals is there is even more negotiating room beyond that. CarBargains, a new-car shopping service, follows sales incentives of all types. Data provided by the organization shows sales incentives of all types were up 4.4 percent to 260 models in the week of Dec. 18, compared with the same period last year. Most of the increase is found among mini-vans. High-end cars are not exempt, however.
Dealers can pass along the savings to customers if they choose.
George Pipas, sales analysis manager for Ford, said he isn't sure sales incentives will rise above their current level. But he said the auto industry is certain to hold the line on prices, just as other industries must. The consumers have been benefiting from competition in the auto market for quite some time. While the U.S. auto industry enjoyed a hot run through most of the 1990s, it did so while holding price increases at or below the rate of inflation. Competition from Japanese and European automakers meant the Big 3 could not increase car prices.