Manufacturers are spending more money to keep new-vehicle demand moving.

Average incentive spending is projected to reach roughly $3,574 per vehicle in September, up more than 7% from last year.

On traditional ICE and hybrid vehicles, incentive spending has increased more than 30% year over year.

Yet the average monthly payment is still projected to reach a September record of $821.

That raises an uncomfortable question.

If OEMs have to continually increase rebates, subsidize rates and support leases just to keep consumers near an acceptable payment, is the underlying vehicle price simply too high?

Incentives can move inventory and create urgency, but they can also distort residuals, train customers to wait for deals and make pricing increasingly difficult to understand.

Would the industry be healthier with lower MSRPs and smaller incentives?

Or is incentive flexibility exactly what dealers and OEMs need in an unpredictable market?