Edmunds.com recently issued a report finding that domestic automakers are continuing to increase the incentives for new cars offered at dealerships. Buyers looking for a deal may think they’re finding savings, but it’s likely that used cars in New Jersey will still offer a better price point.

The site is reporting that dealerships are offering price cuts or payment assistance that averaged $3,500 in September, with performance automobiles and SUVs receiving the deepest discounts. Comparatively, foreign automakers are cutting back on the deals offered to consumers.

“After five straight months of decline, incentives are on the rise again,” stated Jessica Caldwell, Edmunds.com director of industry analysis. “And now that Cash for Clunkers is over, automakers have to give consumers an incentive to buy – out of their own pockets, not the taxpayers.”

But one doesn’t need to resort to a pen and paper to see that used cars in New Jersey are the better deal. A new car depreciates as much as 20 percent as soon as it leaves the lot, so a new car would have to be priced at less than $14,000 and still receive the $3,500 discount to be as inexpensive as a pre-owned option. Comparing the two sets of prices may point frugal buyers to a more cost-effective option.