Great deals exist on convertibles like the Toyota Camry Solara.
A new report from Edmunds.com reveals that screaming Halloween deals are to be had on luxury cars, sports cars and convertibles. "There are still a significant number of 2009 model year vehicles for sale in these segments," states Edmunds.com Senior Analyst Jessica Caldwell. "Dealers should be open to any decent offer, since they know that these vehicles, which often sell to a fashion-conscious crowd, will drop in value once the 2010 model year vehicles roll in."
Every remaining Pontiac and Saturn is also selling at huge discounts due to the imminent closure of these brands. Knowing that dealers must rid their lots of these discountinued models can give consumers a bargaining advantage.
For further information, please take a look at Edmunds' AutoObserver coverage: "Screaming Deals on Convertibles, Luxury Cars, Sports Cars and Dying Models, Edmunds.com Reports."
Incentives on cars and trucks are shooting up as dealer inventory, decimated by Cash for Clunkers, is stacking up again. "This year has been a wild ride for automakers, and it's not over yet," said Edmunds.com Senior Analyst Jessica Caldwell. "No segment is unaffected, though the discounts on luxury models and trucks are particularly heavy."
"Low interest financing and cash rebates dominate the landscape but subsidized lease programs, almost non-existent in the past few years, are increasing," noted Edmunds.com Senior Analyst Michelle Krebs in her report on AutoObserver.com.
Effective tomorrow, Chrysler Group will resume leasing on all 2010 model year Chrysler, Dodge and Jeep vehicles, courtesy of its recent lending partnership with GMAC Financial Services.
"Special" vehicle lease rates through Sept. 30, 2009 will be available on the Chrysler Town & Country, Dodge Grand Caravan, Ram 1500 and Journey, and Jeep Wrangler and Liberty. Current Chrysler Group vehicle owners are also eligible for $1,000 Owner Loyalty Bonus Cash for the lease or purchase of select 2010 vehicles or the purchase (only) of select 2009 vehicles.
Did you miss out on the Cash for Clunkers program? Fear not, since Hyundai just announced they will be award an additional $1,000 on top of your trade-in towards a new Santa Fe or Sonata. It's a pretty sweet deal when you also consider the company's ongoing cash-back rebates ($2k for Santa Fe, $3k for Sonata) and the Santa Fe's promotion of a year's worth of gas locked-in at $1.49/gallon. Just like Clunkers, these deals won't last - promotions are good only through September 30th.
Toyota's Corolla was the most purchased car under the Cash for Clunkers program.
The Department of Transportation is tooting its own horn. Claiming overwhelming success for the Cash for Clunkers program, the federal government is crowing about the 690,114 sales the program spurred, the fuel economy gains made, and the American jobs restored.
But there's the nagging fact that vehicle transaction prices actually rose during the program, as some manufacturers and dealers cut back on their own incentive offerings. Customers taking advantage of the program still got great deals -- just not as great as if they'd been able to simply tack the C4C rebate onto the market prices that existed before the program.
Though the CARS program (aka Cash for Clunkers) still has about half of its funding available, a number of news outlets are reporting that some dealers have suspended clunker sales due to lack of payment from the government. The popularity of the program along with a few clerical errors has caused a backlog in clunkers applications, which is delaying the payout process. Numerous dealers are claiming that they are owed credits deep into the six figures.The Obama administration is expected to announce a wind-down strategy in the next few days to ensure that dealers will receive their funds.
This may make it slightly harder for consumers to find participating dealers, but savvy shoppers can take advantage of new incentives that utilize the cash for clunkers credit.
Notwithstanding the recent Congressional approval of additional funding, the Cash for Clunkers program looks to be sputtering like one of the countless euthanized engines left in its wake. Edmunds' own AutoObserver is reporting that the initial surge of consumer interest has abated, with "new-vehicle purchase intent" figures down 31% since the program's inception in the last week of July.
A number of factors are at play. The new infusion of government money, for example, has attenuated the initial sense of urgency, which was fueled by fears that funds could run out. And with dealer inventories dwindling in the face of the Clunker-driven spike in demand, prices are rising, making consumers less eager to act.
For more information, take a look at AutoObserver's full story here.
General Motors and Honda are the latest companies to begin boosting their production for vehicles that are selling well under the Cash for Clunkers program (Ford announced the same last week). Automakers, which had originally cut inventory back drastically due to poor sales, are responding to dealers who screaming for more small and fuel-efficient vehicles to sell before the Cash for Clunkers money runs out.
The ramped-up production is good news for some consumers who were having trouble locating the car they wanted. For all the details on the models affected and what it means, see our AutoObserver entry.
The smashingly successful Cash for Clunkers program -- which panicked Congress into authorizing $2 billion in additional funds -- saw new car sales skyrocket. So how is it possible that sales could drop to their (awful) pre-program levels as soon as nine days from now?
Michelle Krebs reports in AutoObserver that the pool of buyers who have eligible clunkers -- and the wherewithal to finance a new car -- is drying up. Sales are already down 15 percent from last week's peak.
Our raw data is generated by a large Edmunds.com team consisting of statisticians, data collection and processing staff, and our pricing analysts. It's complicated stuff. Edmunds has spent many years and millions of dollars gathering and refining our methodology. It just doesn't get any more reliable.
We regularly share some of this data with the media, and you've even see us quoted on the Senate floor if following the C4C debate. You can find a list of the reports we've made public by viewing our Press Releases. Because our information is proprietary, though, we don't offer our data for sale or license. If you don't find what you are seeking through one of the links above, you can try one of the organizations listed here.
I drive (read: hold hostage in the bowels of the company garage) a 2001 Honda Prelude, which has something in common with every Honda car ever: it's not on the Cash for Clunkers Eligible Used Vehicles list.
But I've always kind of wanted a 1993 Acura Legend GS (above) -- you know, the one with the six-speed manual and 230-horsepower "Type II" V6 and shiny wheels. And that's on the list.
So let's suppose I had that Legend instead, and I felt like getting in on this Cash for Clunkers action. Want to know which car I'd trade it in on from the Eligible New Vehicles list? Sure you do. In fact, you want three.
If you have a federally recognized "clunker" on your hands and happen to be jonesing for a new Audi, this is your lucky month. Audi has waded into the fray by announcing an additional $1,000 consumer incentive on Cash-for-Clunkers transactions from today through August 31.
The incentive is valid for most 2009 Audis with the 2.0T power plant and some leftover 2008 models as well. Notable exceptions include the Q7 SUV and A5/S5 performance coupe -- and a notable inclusion is the V6-powered 2009 Q5 crossover. For more information and a complete list of eligible Audis, check out Audi's official press release.
Friday was the start of the government program (or one of the "starts") designed to stimulate car sales and take gas guzzling polluters off the road. But Friday saw dealers scratching their heads in confusion, reading the mammoth rules document and trying in frustration to register online.
Furthermore, NTSHA (National Highway Traffic Safety Administration), the administrating agency, said money won't be available for dealers until Monday.
Still, Cash for Clunkers (or C4C) seems popular with consumers and interest is building on many other fronts. Here are a few late breaking developments.
As state tax offices, automakers and dealers wait for details to arrive on the federal government's Cash for Clunkers plan tomorrow, there's tremendous confusion on the issue of sales tax: Should dealers charge customers sales tax on the price of their new vehicle before the federal tax credit is applied, or after?
The answer -- at least for today -- is that it depends.
As it emerged from bankruptcy GM announced it is considering selling new cars on eBay.
Car dealers have always had a love hate relationship with the internet. Mostly hate.
In 2000 when the internet was first sending ripples of terror through the car business, dealers fought to beat back the transparency that the internet brings to the buying process. A few years later, at a NADA conference, dealers talked smack, bragging how they had repelled the attack and how "all roads still lead to the dealership."
But now a humbled GM, reemerging from a speedy bankruptcy last week, announced it's working on a deal with eBay Motors to sell its new cars on the internet. The cars would still be delivered by local dealers.
Is this a path to profitability for General Motors? Or just lipservice to a generation of young buyers who currently get their books, music and movies with just a coupla clicks.
The latest highlights from Edmunds.com and its blogosphere.
Inside Line News: Kia Forte Koup Koming in August The 2010 Kia Forte Koup, the company's first coupe, will be available for sale in the U.S. later this summer, a bit earlier than expected. A competitor to the Honda Civic and Scion tC, the Koup will come in base EX and sportier SX trims; the SX is expected to come in at just under $20,000.
Green Car Advisor: The Climate Bill and the Cars We'll Drive The climate bill, which will have a big impact on the cars of the future, has passed the House of Representatives and will go to the Senate this fall. The bill covers incentives, EV charging, flex fuel and emissions. Senate Majority Leader Harry Reid has set a December deadline for the bill to go in front of President Obama, but it's unsure whether the bill can get the votes it needs to pass in the Senate.
Karl on Cars: A New York State of Mind Editor-in-Chief Karl Brauer asks, how much of a car town is New York City? Not much at all, he says. "And you know what? That's why I love it!"
Summer usually mean more money spent on gas. So vehicle manufacturers, already offering record-level incentives, are adding "price protection" for fuel costs as a way to get you to buy a car this summer.
For example, Hyundai recently offered a Gas Lock program, part of the Hyundai Assurance program, in which new-car buyers will get 12,000 miles of gas at $1.49/gallon, slightly higher for midgrade and premium. Suzuki also announced Free Gas for Summer for purchasers of the Suzuki SX4, with gas cards worth $270 or $290, depending on the model you choose.
Some of these programs are worth it; other times they come with strings attached that make it difficult to determine their value.
Manufacturers are pulling out all the stops as Cash for Clunkers (aka CARS) gets ready to go live on July 23. Suzuki is no exception, and like Hyundai, has announced a free-fuel based promo. The Suzuki "Free Gas for the Summer" event kicks off today (July 1) and runs through August 31.
The promotion will apply to the purchase of a new Suzuki SX4 sedan or crossover. Qualified buyers will get a pre-paid gas card, valued at $270 or $290, depending on the model. Suzuki estimates this fuel credit should last about three months, or until the end of the summer. In addition to the free gas, consumers who opt for a manual transmission will be eligible for a $2,000 customer cash bonus.
More details will be available at your local dealership or on Suzuki's website.
Hyundai is adding a new perk to its Hyundai Assurance program: Gas for up to 12,000 miles at $1.49 per gallon for regular fuel, slightly higher for midgrade and premium. Called Hyundai Assurance Gas Lock, the program covers most models leased or purchased between July 1 and Aug. 31.
Though heavily watered down from its original concept as a way to get less fuel-efficient cars off the road, the Cash for Clunkers program made its way out of Congress yesterday attached to a war funding bill, and is expected to be signed shortly by President Obama. The program was created to provide vouchers worth up to $4,500 towards the purchase of a new car, if the car being traded in gets less than 18 mpg and has little or no trade-in value. The cars traded in for vouchers on the Cash for Clunkers program will be crushed.
Final details will be sorted out in the next month, but the program is expected to be up and running by early August and run through October. There are less stringent mpg requirements for SUVs, minivans and pickup trucks, and for more details on the program, check out our Cash for Clunkers FAQ, which is being updated throughout today as details on the Cash for Clunkers program emerge. We've got a quick synopsis here after the jump.
Earlier this year, the U.S. Treasury Department passed the American Recovery and Reinvestment Act of 2009, which included a provision allowing taxpayers who buy a new vehicle to deduct state or local sales (or excise) taxes paid on the purchase. Yesterday, it announced that new vehicle purchases made in states without a sales or excise tax - such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon - will also qualify for the deduction. Taxpayers in these states can deduct other fees or taxes imposed by the state or local government that are based on the vehicle's sales price or as a per-unit fee.
Many consumers focus on the purchase price of a car, forgetting that tax on a such a large purchase amounts to a large chunk of change. So this latest tax development is good news for vehicle buyers in those states who were sitting on the sidelines. Uncle Sam is happy to put some cash back in the taxpayer's pocket (what the heck, they're putting money into everyone else's, too), but the primarily purpose of the ruling is to benefit the auto industry, which needs all the help it can get to boost new car sales.
Invoice price (a.ka. "dealer cost") is the amount the dealer pays to the manufacturer for a car from the factory. This, of course, is less than the MSRP -- the sticker price. But the invoice price is almost always higher than the amount the dealer actually ends up paying to the manufacturer, because the manufacturer offers extra discounts to the dealer. The two most common discounts are "dealer holdback" and "dealer cash," and there are often others based on sales volume.
A few things to remember about invoice price. It doesn't include tax, title, license or registration fees, nor does it include any manufacturer-to-consumer rebates. Sometimes the amount quoted as the invoice price includes the destination charge and sometimes it doesn't, so look closely. (On Edmunds.com, we always make that clear.)
[Note: Because of regional pricing differences, the invoice price you see on Edmunds may occasionally vary a bit from your local dealer's invoice. Why? Regional pricing differences. For example, in the South and Southeast, large independent distributors control the pricing of Toyota vehicles, and they may set prices at different levels than those established by Toyota for the rest of the country. Same with Subaru in the Northeast.]
All this makes determining the dealer's actual net cost difficult even for seasoned automotive insiders. That's why we developed the True Market Value pricing system, which accounts for the effect of all of the manufacturer's extra charges as well as the dealer's hidden subsidies.
So, can you buy a vehicle for less than its invoice price?
A version of the Cash for Clunkers bill passed the U.S. House on Tuesday by a wide bi-partisan majority (298-119). The bill will now make its way through the Senate, where an alternate version is still making the rounds.
As it currently stands, the House version of the Cash for Clunkers bill will offer up to $4,500 to consumers who trade in an older vehicle that gets 18 mpg or less combined, for a new vehicle that gets at least 22 mpg combined. The bill's requirements are a less rigid as it pertains to SUV and truck owners, since the new vehicle only needs to improve by 2-4 mpg.
The Senate version of the bill differs in its slightly more stringent mpg requirements, potentially narrowing the pool of vehicles that will qualify. There is also some debate on where the funding for the program will come from.
The Cash for Clunkers bill has strayed slightly from its environmental goals, but it now apppears that the emphasis is on stimulating sluggish new car and truck sales.
We will be updating our Cash for Clunkers FAQ, as soon as more information is available.
In the midst of June gloom, Volvo, Ford and Chrysler are trying to brighten their sales with special incentives.
Volvo: The Swedish automaker will offer extended warranty coverage with its Safe + Sound Coverage Plan on all its vehicles except the new XC60 SUV. It runs from June 2 to 30 and includes: 5 year, 60,000-mile warranty (versus 4 years, 50,000) 5 years complimentary factory scheduled maintenance (versus 3 years miles) 5 years of roadside assistance (versus 4 years) 5 years Wear & Tear Coverage (includes free replacement of wiper blades and brake pads and rotors).
Ford: The Blue Oval's Drive the Ford Difference is offering 0-percent financing and three months worth of payments on all its 2009 Ford, Mercury and Lincoln vehicles (other than hybrids and the Shelby GT500). There are smaller incentives available on 2010 models, excluding the redesigned Mustang. Also, Ford will donate $20 to Susan G. Komen for the Cure every time a customer test drives a Ford, Lincoln or Mercury.
Chrysler: From June 2 to July 1, Chrysler will offer 0-percent financing for 60 months through GMAC on select 2009 Chrysler, Jeep and Dodge vehicles or up to $4,000 cash. Current Chrysler Group vehicle owners are eligible for $1,000 on most 2008 and 2009 vehicles. There's a further $1,000 available to qualified members of participating credit unions.
In a series of press conferences today, President Obama and GM's CEO Fritz Henderson released details on GM's earlier filing for Chapter 11
bankruptcy protection.
Saying, "give us another chance," Henderson promised that the bankruptcy filing would be "the start of a new and better GM." He predicted that the restructuring process would take from 60 to 90 days. GM has launched its own site to help keep the public informed of its latest efforts and promotions.
Henderson was preceded by President Barack Obama who essentially said that Chrysler's apparent reemergence from bankruptcy bodes well for GM's long term success. He noted that after entering Chapter 11, Chrysler sold more cars in May than in April. However, he didn't mention that most of those sales were at fire sale prices.
Chrysler announced yesterday that half of the inventory it's trying to liquidate from closing dealerships (over 44,000 mostly 2008 models) has already been sold.
You've heard there are great deals at Chrysler and GM dealerships that are closing due to recent or impending bankruptcies. Still, did you know that you shouldn't pay asking price for a car, no matter how low that is? So how do you find your best deal?
Negotiate.
Are the rules different now that Chrysler has until June 9 to sell its inventory? The answer is yes. Here's what we suggest.
Suddenly there are a number of leases for under $200 a month, such as for the 2010 MAZDA3 i Sport.
The first sign of automotive economic trouble last summer was the collapse of leasing as a way to finance new cars. Leasing didn't completely disappear, but the enticing payments of the past disappeared for domestics and lost their luster among imports. Since then, we haven't seen a lot of lease deals that we find tempting. Until now.
Our data department pulled a list of current national lease deals and found there are at least 20 different cars that can be leased for under $200 a month. And the list includes some very cool cars. So, what's the "gotcha" in all this?
Hyundai recently announced a new incentive program that gives customers the option to receive their cash back through a VISA debit card. This program began on May 15, and is good until June 30, 2009.
Earlier this year, Hyundai introduced their Assurance program to protect car buyers who might lose their jobs in a troubled economy. The incentives package proved very successful and was later imitated by other automakers. It will be interesting to see if they are breaking new ground with this innovative debit card plan.
The customer cash will be deposited monthly on a debit card and works just like a VISA gift card.
This program can be helpful to consumers who already have a sizeable down payment. They can use the extra cash to pay for gas or help with their monthly payment. However, we expect that most consumers will prefer to have the customer cash included at the time of the purchase. It is important to have as much equity in the vehicle to offset its depreciation and keep you from being "upside down." In this way, if you need to trade it in, or sell it for cash, you will have more freedom for your next vehicle choice.
Here is a list of eligible models, and the amount of cash back you would receive:
Further proving that there's never been a better time to buy a new vehicle from recession-battered domestic automakers, Chrysler has announced zero-interest financing for 72 months on certain 2008 Chrysler
, Dodge
and Jeep
vehicles through Chrysler Financial
. This is on top of factory-to-consumer cash incentives
that the bankrupt automaker is already dangling to lure buyers into its showrooms.
The financing option is available through June 1, before Chrysler Financial is taken over by GMAC, and comes as Chrysler seeks to sell 2008 models before being merged with Italian automaker Fiat SpA.
The Dodge Ram 1500 just eked out a victory in a recent Inside Line comparison test, where editors lauded its smooth-riding and capable rear coil-sprung suspension, healthy track and towing performance, efficient dimensions and plethora of convenience and comfort features. While the sticker price was the highest of the group, we all know that the reality of the situation is that the sticker price is literally just a suggestion, one that is usually overlooked by customers and dealers alike. In addition, Dodge is offering a truck-load of cash incentives that can be used to either drive down the sales price, or to just fill up the bed. Get the details, and make your choice, after the jump.
Dealerships could see up to a million new shoppers this year thanks to the "Cash for Clunkers" bill.
A measure to offer vouchers of up to $4,500 to take polluting gas guzzlers off the road and replace them with new cars is picking up speed. President Obama and House Democrats have settled on a version of the bill and revealed more details about how it would work. It still must pass the full Congress before going into effect.
Since we last saw the plan, it has been reworked and some of the earlier objectionable elements have been scrapped. It now appears that it will not call for the crushing of used cars and is completely optional. It also has been tweaked to lessen the impact on low income families and will not cut into the classic car market.
Still, some groups say the measure will not significantly improve fuel economy of many vehicles on the road. The government is expecting that the program may stimulate 500,000 to 1 million sales, but based on Edmunds' users we could see up to 3 million additional new car sales created by the program.
For more details on this issue please see our detailed breakdown of the proposed program here as well as an environmental analysis on Green Car Advisor.
Automaker incentives set a new all-time high in March, even though it appears they didn't help sales much. The average automotive manufacturer incentive was $3,169 per vehicle sold, yet March sales will come in at a paltry 774,000 vehicles sold -- a 40-percent drop from March 2008. Perhaps they should've thrown in a free T-shirt. People love that sort of thing.
For the complete story, including a list of incentives from the top seven automakers, see Edmunds Auto Observer.
One day after Chairman and CEO Rick Wagoner was forced out of his job as the U.S. Government restructured domestic automakers, a new round of comprehensive incentives were announced by Ford and GM.
The incentives mark a new approach to motivating buyer behavior. Both incentive packages have at their core a buyer protection plan to take over payments in the event of unexpected jobless. This approach was pioneered by Hyundai last year and proved very successful.
GM was set to launch its incentives, called "GM Total Confidence" to much fanfare when Ford unexpected announced its own incentives package and buyer protection program called "Ford Advantage Plan."
The elements of GM Total Confidence, which are in addition to zero- or low-interest financing incentives, cash rebates and customer loyalty promotions, include:
- Payment protection for the first 24 months of ownership so that if the buyer suffers job loss, GM makes nine payments of up to $500 per month;
- A protection plan that ensures the value of a buyer's trade-in;
- OnStar's safety and security plan for a year as standard fare;
- Fully backed, 5 year/100,000 mile limited powertrain warranty with roadside assistance and courtesy transportation.
While new cars sales are down big time -- despite massive incentives that include zero percent or nearly as low interest rates -- used cars have been selling comparatively well. Because of this buying climate, a new version of a given model may prove cheaper to purchase than a used example, due to the aforementioned incentives and the fact that used car loans typically have much higher interest rates compared to new car loans.
Nowadays, any segment of the automotive industry that isn't in decline is considered a success story. And so it is with certified pre-owned (CPO) vehicles. According to Edmunds data, while new car sales dropped 20.1% and used cars dropped 8.1% as a percentage of franchised dealership sales in the last 12 months (Feb. '08 - Jan. '09), CPO vehicles have risen 6% during the same time. (In fact, a month ago, Edmunds reported that approximately half a million car shoppers that would have bought new cars in the previous three months had opted for used cars, including CPO vehicles, instead.) This trend continues despite the record-setting rebates available on many new cars, whereas CPO vehicles only qualify for special APR financing.
Automakers, in response, are pumping up their CPO programs. Last month, Toyota extended its certified used program to its Prius, Camry and Highlander SUV hybrids, making it the first dedicated certified pre-owned program for hybrid vehicles. As more of the popular hybrids come off lease, the new Toyota Certified Hybrid program will allow more people to get into these fuel-efficient vehicles at a price they can afford.
BMW, which leases a huge percentage of its new cars, is pushing its CPO program as well. They're offering 0.9% financing on MY 2006 vehicles through April 30th. That will allow many consumers who coveted the BMW name, but couldn't afford one, to finally get in the driver's seat. Although it wasn't true a few years ago, today every mainstream brand offers a CPO program. You can get details on all the individual CPO programs here.
Currently, CPO vehicle prices average $1,284 more overall than non-certified vehicles, but they come with the peace of mind that only a comprehensive inspection and a factory-backed extended warranty can provide. And because they don't take the depreciation "hit" that new cars do, you're typically getting a better bang for your buck. It's no wonder, then, that buyers are opting for CPO over new or plain old "used" vehicles.
Normally, a car maker doesn't put incentives on an all new model. They usually test the market waters first and see what kind of reaction the car gets from the buying masses. But in today's economy they don't have that "let's wait and see" time luxury and need to do whatever they can to scrape up some sales action, pronto. Hence incentives on all-new models such as the Hyundai Genesis coupe and Mercedes-Benz GLK compact crossover.
In these tough times, many normally upstanding consumers (financially speaking) have found themselves behind on their car payments. As such, car repossessions are at an all-time high. Here are some tips to consider if a repossession looks likely.
Although the 4.5-liter Duramax turbodiesel V8 was fully developed, GM decided to shelve the program for a few reasons. One is that in the light-duty truck sector, the diesel would require expensive exhaust treatment technology to meet the latest emissions standards. The other chief reason is that diesel engine options tend to be pricey and GM wasn't certain that folks in these cash-strapped times would want to pony up the additional cost at purchase time. GM states that they do want to build this engine and would consider a joint-venture manufacturing of the baby Duramax.
