March Auto Madness - Let the Rebates Begin

[1931Chevy]

http://money.cnn.com/2007/03/05/news...ce=yahoo_quote
NEW YORK (Fortune) -- This week marks the opening of the spring selling season for automakers and dealers. Get ready for some especially intense activity.

Sales have been weak this year as buyers struggle with collapsing real estate prices and slower economic growth, and auto companies need a lift - badly. DaimlerChrysler's (Charts) Chrysler unit is up for sale, Ford (Charts) is facing its worst-ever financial crisis and GM (Charts) is just emerging from one.Ford and Chrysler fired the first shots last week when they rolled out new incentives to spark some sales-floor action. Ford is offering cheap leases and subsidized payments, while Chrysler is pitching cash rebates along with free upgrades to Hemi engines.


A strong spring season can be make-or-break for automakers. They need to move a lot of metal when customers are in a mood to buy it. And they only have a short time in which to do it, because the end of the model year is just around the corner. By July, dealers will be running clearance sales to get rid of their '07 inventory so they can begin stocking '08s in the fall.

[redimpss5]

Looks like I picked the right month to buy a truck!

[Realist]

This will be an important time for GM. Will they jump into March Madness again or hold to their word?

[CobaltSScrazy]

Originally Posted by Realist

This will be an important time for GM. Will they jump into March Madness again or hold to their word?

lets hope they don't now and just offer 0% financing in the summer through mid july. that'd be purrrfect for me

CobaltSScrazy

[tgunnd39]

Last thing GM needs right now is to shoot a hole in their credibility by jumping on the rebate bandwagon. Stay the course!

Just my .02

[Mikkoo]

Originally Posted by tgunnd39

Last thing GM needs right now is to shoot a hole in their credibility by jumping on the rebate bandwagon. Stay the course!

Just my .02

Agreed. I'm hoping they stay away from the giveaway game too.
This practice ruins resale value for vehicles.

[jbartley]

they won't join the rebate wars.

0% off and on, probably. that really just generates showroom traffic. the average buyer doesn't even qualify for it.

[telo]

This makes things worse. Do I get rid of my car now and buy a Silverado, or do I wait for the six-speed? Anyone know how big a difference the six-speed will make? Will I regret getting the current one, when I can wait (don't want to).

[dlr]

Originally Posted by jbartley

they won't join the rebate wars.

0% off and on, probably. that really just generates showroom traffic. the average buyer doesn't even qualify for it.

Actually the average buyer does qualify for it. To qualify you have to be in GMAC's S, A, B or C tiers which most people are. the D and E tiers are typically sub prime and even then the rate is usually 10.95% which a normal D and E tier customer is 15%+

[gardnet1]

As a consumer, I'm looking for a great deal. That's not exactly in the best interests of Ford & GM though.

[johnny smallblock]

Originally Posted by telo

This makes things worse. Do I get rid of my car now and buy a Silverado, or do I wait for the six-speed? Anyone know how big a difference the six-speed will make? Will I regret getting the current one, when I can wait (don't want to).

You should wait.
1. Resale value will be higher with the 6-speed
2. Gas mileage will be higher with the 6-speed
3. The truck will be faster with the 6-speed
4. You don't want to hear it from Tundra owners
5. You should always avoid buying a car in it's first model year if you can.

[PONTIACGXP]

I guess they are using incentives on some models because my mom just bought a 07 TrailBlazer and got 4500 cash back and my dad bought an 07 Acura Tl not sure if he got a deal on the Acura though but they thought it was about time they took in the Armada and the pathfinder.

[nascarnate326]

Wonder what I can pick up a SS/SC Cobalt for if they do rebates.....
Personaly, i want rebates, but I also want GM to stay to their word.

[unkillsam]

Originally Posted by nascarnate326

Wonder what I can pick up a SS/SC Cobalt for if they do rebates.....
Personaly, i want rebates, but I also want GM to stay to their word.

I doubt that you will get a rebate at all. When they do run the $500.00 on the Cobalt's, the SS/SC is excluded every time. They only build a little over 5,000 a year and have no trouble getting rid of them.

[boblutzfan]

Originally Posted by johnny smallblock

You should wait.
1. Resale value will be higher with the 6-speed
2. Gas mileage will be higher with the 6-speed
3. The truck will be faster with the 6-speed
4. You don't want to hear it from Tundra owners
5. You should always avoid buying a car in it's first model year if you can.

All excellent points. I would wait for it - the only downside may be a slight reduction in tow rating. However - for most truck buyers it is just bragging rights anyway. The resale value, gas mileage and performance issues are all key. The 2008 models are just six months away. I would wait until the fall - maybe even closer to Christmas if you can. End of the year is a good time to buy a vehicle as the dealerships and the manufacturers are wanting to boost their year end numbers any way possible.