I disagree. Incentives are not just smoke and mirrors.
The incentive amount varies at the whim of some corporate whiz somewhere, but it is real, absolute savings for the buyer.
Now, I agree that dealers play games with the selling price, but the old saying of "buyer Beware" really applies when buying a car.
If you are paying whatever the sticker is for whatever you are buying, then you deserve to pay whatever you pay, but it pays to be buyer smart and do some research on the computer to find out what the dealer cost is for the vehicle.
Last time I bought one, I paid dealer invoice minus the factory and dealer incentives. I got $4500 worth of incentives, and what I felt at the time to be a pretty good deal for my truck, but the dealer didn't lose any money on me. Even working with the dealer cost, he still made about 3%, which in my case was about $1750. I'm waiting for things to get lean for the dealers, and for their backlog to grow to a level that the incentives increase substantially from where they are now, and then I'll go shopping again. In the meantime, I'll enjoy my '08.