Auto watch: New-car incentives forecast to rise

|By:, SA News Editor

A fall in used car prices in the U.S. could put some pressure on automakers to offer higher incentives to lure in buyers for new vehicles, according to analysts.

Truecar.com estimates that new-car incentives will push up 11% to $3K per vehicle in the next two years to counterbalance a drop in used car pricing.

The long-term forecast for the automobile industry is still favorable with most research firms calling for a return to a pre-recession level of volume.

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