As reported by Reuters, TrueCar estimates used-car prices will drop 5.2% by 2017, while new-car incentives, now at about $2,700 per vehicle, will rise about 11% over the next two years to nearly $3,000. The National Automobile Dealers Association forecasts a nearly 7% decline in the average used-car price to just under $15,000 in 2016 from $16,025 in 2014.

In response, Larry Dominique, executive vice president of research firm TrueCar Inc, said the automakers are going to have to increase incentives more to achieve annual sales above pre-recession levels of about 17 million new vehicles.