Automakers Get Set to Play Latest Round of Rebate Game
It's August, and once again carmakers' thoughts are turning to raising prices, according to the Wall Street Journal. With 2004 models starting to roll into showrooms, most of the
major automakers appear ready to play the latest round of a very old game, the Journal said.
In September 2002, for example, the Power Information Network, an affiliate of market-research firm J.D. Power & Associates that
specializes in harvesting vehicle-transaction pricing data from several thousand dealerships nationwide, show the average cash rebate offered to consumers was $2,027 a vehicle. In October, that amount dropped to $1,849 -- a decline of $178, or 8.8 percent.
The fall pricing game is one that automakers play even though recent history suggests many customers know fall is a good time to admire the new designs, but not necessarily to buy them. The savvy of the U.S. public is shown in the Power Information Network data: As surely as cash rebates fall in October and November, by
the first quarter the spending is on the way back up.
"There is every fall a dip that occurs at the rebate level and total spending per unit on discounts," says Power Information Network's Tom Libby. But Libby predicts the deals will have to be reloaded after a short time. GM, he
says, wants to push its market share for the year to at least par with 2002. That will take some doing, as GM's share through the end of July is 27.6 percent, compared with 28.5% during the first seven months of 2002, according to the Journal.
More F&I

Integrating Nontraditional F&I Products
The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.
Read More →
Trust Is Personal
Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.
Read More →
Amplify 2026 Billed as Turning Innovation Into Results
Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.
Read More →
Own Your Outcome: F&I in the Digital Customer Journey
Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Lifetime Battery F&I Product Meant to Drive Dealer Traffic
EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.
Read More →
The Psychology Behind Menus That Increase Add-On Sales
There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.
Read More →
Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →
Auto Consumer Anxiety Presents Opportunity
A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.
Read More →