"Vehicle Incentives: Desperate Times Call for Desperate Measures" Edmunds Daily

Vehicle Incentives: Desperate Times Call for Desperate Measures

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Incentives on new vehicles -- even ones that used to command sticker price and above -- are getting to crazy levels. Why? Dealer lots are still full of new 2008 vehicles that aren't moving (not that the '09s are moving so well, either). In fact, on average, 39% of the cars in lots in December 2008 were that year's models, compared with only 19% for 2007.

The average "days to turn (DTT)" -- the number of days from when a dealer receives a car to when it drives off the lot -- is at a record 86 days for the industry overall. Here's the December DTT for the Big 6. (All names include their subsidiaries except for Ford's Mazda.)

Chrysler Group    124
GM                      99
Ford                     88
Nissan           83
Honda                59
Toyota          58

Of the above, GM, Nissan, Honda and Toyota are at all-time highs. Toyotas that used to be sold before they even came into the showroom are now sitting on the lot for two months!

What this means to consumers is deals galore. In an unusual reversal of the general rule, it may even be a better deal to get a new car (with incentives on it) than a late-model used car. But the deals aren't limited to '08s; there are some great deals on '09s as well.

Here are some examples of current incentives:

Chrysler just announced a "Employee Plus Plus" program that goes farther than the 0% APR plan:
- New vehicle customers receive employee price on all 2008 and 2009 Chrysler, Jeep and Dodge vehicles
- Customers also receive discounts of up to $3,500 on 2009 model year vehicles and $6,000 on 2008 model year vehicles
- Zero percent financing is available for up to 48 months
- $1,000 consumer bonus cash is available on most models when financed at Chrysler Financial or local credit union
- New program effective beginning Jan. 26, 2009

Prefer a Japanese car or a hybrid? Toyota's lease specials on the 2009 Prius are expanding into more regions of the country. Special lease deals are also available for the Yaris, and you can opt for $500 - $1,000 Customer Cash, depending on the region. In the Southeast, you can get 0 - 3.9% APR in lieu of cash.

Honda's 2009 Civic gets $500 dealer cash along with special national lease rates, and the 2008-2009 Honda Civic Hybrid now gets $1,500 Dealer Cash which can also be used towards a special lease rate (from 1/21 - 3/2).

Of course, you still have to qualify for these great deals. The dealers desperately want to qualify you, but are at the mercy of their captive finance arms. So if your credit isn't great, check out a credit union before you hit the showroom.

And as always, you can see more details by using our Incentives and Rebates page.