Automakers' Pain Can Be Consumers' Gain

DON'T MISS: New Car shortage coming, Now is the time to buy!

Washington DC June 18, 2009; The AIADA newsletter reported that with historically weak auto sales, analysts said car buyers are getting some of the best discounts on record. And there's evidence the perks are working:

U.S. auto sales increased 0.5 percent from April to May, boosting overall retail sales. The Washington Post reports that as a result, automakers are pushing more and more incentives.

Buyers in May on average got $4,880 knocked off the sticker price, including $2,952 in incentives from manufacturers and $1,928 from dealers. May's incentives are topped only by March discounts, which reached an average of $5,003 per vehicle.

But the slow sales and discounts are taking a toll on dealers, which posted a net loss of $992 per vehicle during the first quarter of this year compared with a net loss of $128 per vehicle during the same period last year.

For consumers, the window of opportunity to get the huge discounts is likely to close by the end of the summer, analysts said. The automakers have significantly cut production. Once the inventories are depleted, they won't need to offer incentives.

For some customers, obtaining affordable credit continues to be an obstacle.