U.S. automakers are getting stingier on sales-closing extras, while Japanese, German and South Korean automakers are offering more, a new analysis shows.

Last month, the average value of incentives for General Motors, Ford Motor and Chrysler Group models fell 14% compared with February 2004, car research website Edmunds.com reports. Over the same period, the goodies rose 16% among South Korean brands, 36% on Japanese nameplates and 57% on German models.


Instant rebates, 0% financing and other gimmicks are aimed at helping customers feel they are getting a better deal than sticker price. But U.S. automakers, fearful that big incentives condition buyers to hold out for a better deal, have cut back. Instead, they have lowered many sticker prices. Sample: GM cut the base price of the Chevrolet Silverado pickup on Jan. 10 from $19,265 to $16,990.


Even though foreign nameplate incentives are climbing, they still are below the average for U.S. vehicles. European-vehicle incentives have risen dramatically, but they remain only about 6% of the average sticker price, compared with 10% among U.S. brands, says Mike Chung, analyst for Edmunds.com.


For individual models, some foreign-brand incentive packages are sweeter than on competing domestic vehicles. The best deals are on those that are due to be replaced by freshened versions. Examples:


• Nissan. At $2,336 and $2,597, respectively, Altima and Sentra sedans had incentives that topped their Chevy and Ford rivals. Both are due for replacement by new models. Overall, "we haven't seen much of an increase in our incentives. We use them surgically to take care of issues we might have in a particular car line," Nissan Vice President Brad Bradshaw says.


• Toyota. Toyota had $4,485 in incentives on its Tundra pickup, which is being updated next year. The incentives are more than on Silverado or Ford F-150. "We offer moderate incentives as needed to adjust to changing market conditions," spokesman Xavier Dominicis says.


Jaguar, a Ford brand, had the biggest average incentives last month, about $6,765 per vehicle, Chung says. Jaguar says it does not comment on incentives.


Merrill Lynch analyst John Murphy says U.S. automakers might be adding incentives. "It looks like incentives could pick up again in March as the competition in the Big Three-dominated segments, such as SUVs and pickups, heats up," he wrote last week.


Many dealers like incentives. "When you go to a restaurant and they throw in the dessert, you're the happiest guy on the planet," says Wes Lutz, who sells Dodges and Hyundais in Jackson, Mich

Hefty cash rebates and low-interest financing have become a way of life in the automobile market over the past few years, especially for Chrysler, Ford, and General Motors. In January, however, GM announced "Value Pricing," a new twist in its pricing strategy: the company lowered the manufacturer's suggested retail price (MSRP) on most 2006 models.

Those discounted vehicles account for 80 percent of GM sales volume. Some models were reduced up to $2,500, and upcoming 2007 models will be priced in a similar fashion. This move brings retail prices closer to transaction prices, and thus may reduce GM's dependency on sales incentives. But is this approach really better for car buyers?

Consumer Reports Auto Price Service analyzed this strategy by comparing the reduced MSRPs for all GM models with the deals GM was offering last fall with its widespread "Red Tag Event" discounts. This analysis included more than 500 vehicles and reviewed all GM brands, models, and trim levels. Our statistics reveal that retail prices have been significantly changed, ranging from a cut of $6,060 for the Chevy Silverado 3500 Ext Cab to an increase of $1,700 for the Chevrolet Suburban and Tahoe. In particular, the full-size pickups experienced the greatest price reduction, with a $2,000 average adjustment.