A recent report by Edmunds.com estimates that the average rebate for new cars last month was $2,714.
"Automakers need to clear out leftover inventory from the 2008 model year, and that effort is boosting the average incentive cost for the industry," noted Jesse Toprak, Executive Director of Industry Analysis for Edmunds.com.
"Last month, 27 percent of all new vehicles sold were from the 2008 model year, while in January 2008 only 12 percent of new vehicle sales were from the previous model year's inventory."
The U.S. auto manufactures lead the way last month with an average rebate of $3,438 per vehicle.
But all of the automakers are offering significant discounts to help boost new car sales.
The European automakers were not far behind their American competitors with an average rebate of $3,297.
Korean brands averaged $2,963 per
vehicle and Japanese manufactures were not far behind with $1,775 in rebates per
Edmunds.com goes on to report that "among vehicle segments, premium sport cars had the highest average incentives, $5,297 per vehicle sold, followed by premium luxury cars at $5,213.
Subcompact cars had the lowest average incentives per vehicle sold, $501, followed by compact cars at $1,422.
Analysis of incentives expenditures as a percentage of average sticker price for each segment shows large trucks averaged the highest, 13.7 percent, followed by large cars at 11.9 percent of sticker price. Subcompact cars averaged the lowest with 3.0 percent and sport cars followed with 4.8 percent of sticker price."