Will the incentive war ever end?

Just some thoughts... Seems like every month they are increasing the incentives, from a few hundred dollars, to a few thousand, to now, between $5,000 and $10,000 in some cases.
Even the 0% apr, its an expectation now. Its like a drug addict. They need more and more to get the same high (more and more incentives to keep the public comming back to buy more cars and trucks).
Its great for a short term boost, but in the long run you can't run the business this way. There comes a point where you are no longer making any money, yet without increasing incentives to pull in buyers you lose sales.
In the end it seems like all these incentives are really doing is pulling in car buyeres from the future in early. It just means less sales down the road, which means more incentives...
I don't see how this cycle will end?
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If you haven't noticed, the sticker prices (MSRP) have increased since the introduction of the model year. Add a little to this option, a little more to that option and then they more than make up for the "incentives" The increases are hard to notice when broken down the way they do. By this time of year anyway, the market has already made the quota and the rest is gravy.

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snipped-for-privacy@newemail.com says...

I noticed that too. 2004 Silverado/Sierra's were $28,200 MSRP this spring, $28,595 over the summer and $28,900 now. Got to find a car thats been sitting on the lot for 6 months to get a good deal ...
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YEp...thats how they do it. The more options it has the more the percentage of increase. Adding as little at $20 to several different options adds up quick.
says...

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"Eightupman" wrote: > If you havent noticed, the sticker prices (MSRP) have increased > since the > introduction of the model year. Add a little to this option, a little > more > to that option and then they more than make up for the "incentives" > The > increases are hard to notice when broken down the way they do. By > this time > of year anyway, the market has already made the quota and the rest is > gravy.
> > > ?</font>
Looks to me like the base prices with incentives is just enough to get you in the door but you see very few base models rolling around. Not to mention the best way to get the options you want is to by the, "option package" which has a bunch of crap youll never notice being there but its still cheaper than buying the options seperately. Then there is the color, if you want other than puke green or metallic grey its going to cost you. Not for the paint, for the color. Even the wheels and tires. Look at what Cadillac charges to upgrade you to Vogue tires.
Then there is the term dealer stock??? Similar to the old theory of charging more to not put lead in the gasoline. Also, the GM dealership where I take my car is up to $102.50 per/hr for maintenance. This makes for good pre-owned stock (right @ 3 yrs/36K). I think they have the game down pretty good!
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OH wait!! Then there are the additional optional items that the dealer will add on his own to make the car/truck "cool" Got a dealer down here that will add some plastic chrome stick on crap to the lights, mirrors and door handles. Then attach running boards, grill guards, bedliner, 20" chrome rims and tires, truck box, plastic vent shades. THEN he will add the "super auto detail treatment" (Scotchguard, and WAX and some silicone protectant for the interior plastic) for $199. So you look at the GM sticker and it says $28,295....BUT the dealer took it upon himself to add all this extra crap and add another $4000 in sylish accessories. Which I bet cost him $1500-2000 dealer cost not retail. So I acted like I was interested. I asked, Me-Where are the stock rims that originally came with the truck? I want those for the winter so I don't get the "bling bling" dirty. Dealer-Oh sir.....I'm sorry we don't of the extra rims. Most of the time we "sell" them to customers or use them as warranty replacements. I went on. me- OK, I asked....when this piece breaks off because it is cheap, do I come back to you for replacement under warranty? dealer- No sir, none of the accessories are warranteed. me-Oh I see....so what if I want this black truck, with just the rims, and the original factory rims and tires with NOTHING else to include the plastic bedliner you screwed into the bed?? dealer:- Well sir this is how the dealer chose to sell it. Now for the famous last words of a dealer-----You can come inside to see if we can find you one you like! me..silently- Hey BOZON, I found the truck I like, right here in this lot, but you went and SCREWED it up. Mind you the truck was a good looking rig, but I could have "accessorized" a bit more personally for half what they wanted for it.
Is that even LEGAL???
Thoughts?

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Dennis Smith wrote:

with a sticker price of $38599 after January 1st GM did a $2000 price increase on all new Tahoes built after January 1st and then put a $5000 rebate on all Tahoes. That the biggest increase i have seen in one jump. Just to cover the new rebate
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