[Ming]

Auto incentives may be best ever
Cincinnati Enqiurer
By Mike Boyer
Enquirer staff writer

They can't help themselves. Ask a car dealer, and they'll invariably say now's the best time to buy a car - no matter when you ask them. But with manufacturers' incentives now at record highs and higher interest rates on the horizon, they really mean it.

"I think you can honestly say: It's as good a time to buy a new car now as it has been for years,'' says Robert Reichert, president of the Kenwood Auto Dealer Group, which owns 10 area dealerships including General Motors, Ford and Toyota franchises.

"Incentives are at an all-time high, that tells me they're probably not going higher, especially with interest rates going up," he said.

The incentives, as high as $5,000 on some models, allow dealers "to sell a car at a price that you couldn't have reached any other time this year and maybe even last year," he said.

Terry Lee, who has a Chevrolet dealership in the Kings Auto Mall in Deerfield Township, said GM has opted to boost its incentives to sell cars rather than cutting production at its assembly plants.

While the incentives are at record levels, summertime sales are nothing new for dealers.

"Inventories are always high at this time of year,'' said Kevin Beyrer, general manager at Kings Ford at the Kings Auto Mall, "because the factories close in summer to prepare for new models. So they'll build all the remaining '04s and some of the '05s are starting to hit."

Although manufacturers say they don't like to offer incentives, they're loath to eliminate them. And dealers say buyers have come to expect them year-round.

"A lot of customers ask our sales people: Do you think (the incentives) are going to get any better? I think the answer today is no. I think we're there,'' said Reichert.

Full Article Here

• General Motors Corp. is offering up to $5,000 cash back or 0 percent financing for up to 60 months on its full-sized sport utility vehicles such as the Buick Ranier, Chevy Blazer and GMC Yukon.

 

[ByTheLake]

God, I hate this subject, but it is reality, unfortunately. Too bad GM needs to put so much cash on the hoods of its vehicles.

Let's take a quick glance at the Automotive News incentives page:
GM's rebates range from $1000 to $5000.
(no rebates on Cadillac, only finance deals)
Toyota has some finance deals on Lexus, but no cash rebates needed.
BMW? A finance deal on 3 series, but no cash rebates.
Honda has finance deals on Civic and Element, but no rebates.
Subaru's rebates range from $750 to $2000.
Mazda's rebates range from $1500 to $4000.

As usual, the newest products tend NOT to have cash rebates on the hoods.

How long can GM keep this incentive thing going before profits erode completely?

 

[doh]

"I think you can honestly say: It's as good a time to buy a new car now as it has been for years,'' says Robert Reichert,

:woot2: Of course he is going to say this!

Although manufacturers say they don't like to offer incentives, they're loath to eliminate them. And dealers say buyers have come to expect them year-round.

Exactly as I have been saying "how are they going to stop the incentive game."

"A lot of customers ask our sales people: Do you think (the incentives) are going to get any better? I think the answer today is no. I think we're there,'' said Reichert.

:eatarrow: Careful, I bet you'll be eating those words.

Only in the States Buick\Chrysler\Jeep dealership.

 

[fighter0410]

I have to say that the incentives are pretty good right now. I just got a 2004 Chevy Malibu LS (stickered for almost $22k) for $19,200....and that was AFTER rolling back in the $1,500 that I was upside down on my Trade-in. Can't beat the deals that are out there right now.



--------------
fighter0410

 

[sheithappens]

Make the prices a lot more realistic and you won't need to offer "rebates". No pickup truck should even come near $50,000. When the manufacuters become realistic with pricing they can do away with rebates. Until then enjoy your "savings".

 

[MelvinJ]

Originally posted by sheithappens@Jul 15 2004, 06:19 PM
Make the prices a lot more realistic and you won't need to offer "rebates". No pickup truck should even come near $50,000. When the manufacuters become realistic with pricing they can do away with rebates. Until then enjoy your "savings".

But it's OK for a luxury sedan or a sports car to cost $50,000? Look at the massive powertrains and capability of some of the heavy-duty pickups and you're getting a lot more for your $50,000 than with cars.

Dodge lowered the prices to a more realistic level when the introduced the reworked Caravan several months back. This was supposed to take care of rebates. But there are still rebates. Like it or not, people still perceive the sticker price as some measure of the value of their car, and the rebate makes them think they are getting a deal. Buying something with a lower sticker and no rebates means you are buying a cheaper vehicle, not getting a good deal.

Is it right? No. But that's the way it is.

 

[doh]

Originally posted by fighter0410@Jul 15 2004, 06:13 PM
I have to say that the incentives are pretty good right now. I just got a 2004 Chevy Malibu LS (stickered for almost $22k) for $19,200....and that was AFTER rolling back in the $1,500 that I was upside down on my Trade-in. Can't beat the deals that are out there right now.



--------------
fighter0410

This is the whole problem

#1 a new model like the Malibu out for a year, with incentives and discounts = to $4300 or almost 20%

#2 Your trade in, upside down $1500 and I bet at that it was in very good condition, somewhere around 2/3-3/4 of the way through your term,and lower than average miles. Most customers now days are $5-10000 upside down, some even higher

#3 So now you are starting a new finance and are alreay $1500 above what a person could go and purchase a new 1 for, and 0% is not avalible on yours again, making you even more upside down on your next purchase.

The incentives are what got you to buy your vehicle, which is good don't get me wrong. New features,new smell,new warranty, but they lessin the value of your trade and lower the value of your new vehicle,postponing the problem for years to come.

So do you grab as much marketshare as possible today at close to a lose and spread it pain over the next 4-5 years, or do you take the hit today, closin some plants loosin some markshare today and wait ready for when the sales return?

 

[GMFreak8]

I'm buying a 2004 Suburban and today I went to price one. I was looking at a loaded Suburban LT for $50,000, and asked what the rebates were, he went and checked and came back saying that I will get $13,000 off. My jaw dropped, I was expecting a significant rebate, but never that much. With my trade in and rebates I'm only going to be paying out of pocket $13,000. :woot2:

 

[GMFreak8]

Originally posted by ByTheLake@Jul 15 2004, 12:42 PM
God, I hate this subject, but it is reality, unfortunately. Too bad GM needs to put so much cash on the hoods of its vehicles.

Let's take a quick glance at the Automotive News incentives page:
GM's rebates range from $1000 to $5000.
(no rebates on Cadillac, only finance deals)
Toyota has some finance deals on Lexus, but no cash rebates needed.
BMW? A finance deal on 3 series, but no cash rebates.
Honda has finance deals on Civic and Element, but no rebates.
Subaru's rebates range from $750 to $2000.
Mazda's rebates range from $1500 to $4000.

As usual, the newest products tend NOT to have cash rebates on the hoods.

How long can GM keep this incentive thing going before profits erode completely?

I don't know about some of that. Today I saw a commercial for Toyota and Honda affering about $1,500 cash back on a few models.

 

[Steven8310]

I don't know if this is common practice in very many places, but many dealers seem to be using the rebate as the only discount they offer.

For example, I was pricing a 4WD Blazer, and I had one dealer tell me that today was "my lucky day." They were going to reduce the price of their Blazer from $29,270 to $24,270. He then said that it was a special price from the dealer. I then said that with the GM rebate of $5000, I would buy it. He then looked startled, and said that the price he quoted included the rebate. I then asked him why his dealership wasn't interested in selling a vehicle that had been sitting on their lot for months (the Blazer I looked at had a build date of Aug 03), and that if he ever got serious about selling, to give me a call.

Finding and dealing for a new vehicle has been quite an experience.

Steven

 

[armycam68]

Auto incentives are great ........if you don't have a trade! The incentives have also reduced the trade-in price of your car. Some dealers are selling used 2004s for 10-12K less than the sticker. Imagine what a 2001 is worth! The price of vehicles is incredible. I hope everyone finances for six years and keeps their car. We need to reduce the traffic at the dealerships!

 

[fighter0410]

Originally posted by fighter0410@Jul 15 2004, 06:13 PM
I have to say that the incentives are pretty good right now.  I just got a 2004 Chevy Malibu LS (stickered for almost $22k) for $19,200....and that was AFTER rolling back in the $1,500 that I was upside down on my Trade-in.  Can't beat the deals that are out there right now.



--------------
fighter0410

This is the whole problem

#1 a new model like the Malibu out for a year, with incentives and discounts = to $4300 or almost 20%

#2 Your trade in, upside down $1500 and I bet at that it was in very good condition, somewhere around 2/3-3/4 of the way through your term,and lower than average miles. Most customers now days are $5-10000 upside down, some even higher

#3 So now you are starting a new finance and are alreay $1500 above what a person could go and purchase a new 1 for, and 0% is not avalible on yours again, making you even more upside down on your next purchase.

The incentives are what got you to buy your vehicle, which is good don't get me wrong. New features,new smell,new warranty, but they lessin the value of your trade and lower the value of your new vehicle,postponing the problem for years to come.

So do you grab as much marketshare as possible today at close to a lose and spread it pain over the next 4-5 years, or do you take the hit today, closin some plants loosin some markshare today and wait ready for when the sales return?

1) Only paid on my loan on the trade-in for 1 year.
2) Need a larger vehicle (starting a family here pretty soon) and was looking at the Malibu before the larger incentives were put on it.
3) I plan on keeping this car for about as long as it continues to move..so rolling in the extra money from my other loan won't be a big deal for me.
4) My trade-in (Nissan Sentra) was in excellent shape, had lower than average miles, but was in real bad need of new tires. The Chevy dealer I bought the Malibu from gave me the highest trade in price of any place I looked for a car at (was all set and ready to get a 2005 Altima until Nissan dealer came back with a trade in that was going to have me adding 3k back into my new loan) So, the way I look at it, not only did I gain 1,500 dollars in that respect, the day before I bought the Malibu incentives went up another 1,500 dollars (from 2k to 3.5k) and I was all set to buy it with the 2,000 cash back, so it was just luck for me to get that extra amount of cash back. The rebates were far from the only reason I bought the Malibu too...I love it. My Dad has the "S-Plan" through Mazda, where I could have basically got a 2004 Tribute, with rebates and my Dad's discount, for about 7,500 off sticker....but I wanted the Malibu. So, what I guess I'm trying to sum up here is that there are still people out there, myself included, that buy GM (or any American car for that matter) products because they actually WANT them and not just because they come with hefty disounts.

---------------
fighter0410

 

[doh]

Sorry fighter

My trade-in (Nissan Sentra) was in excellent shape, had lower than average miles

was a big part of it. No incentives on a new Sentra to lower the value of the used one.

I plan on keeping this car for about as long as it continues to move..so rolling in the extra money from my other loan won't be a big deal for me.

Did you plan on keeping the Sentra only 1 year?

 

[MelvinJ]

Originally posted by fighter0410@Jul 16 2004, 03:57 AM

1) Only paid on my loan on the trade-in for 1 year.
2) Need a larger vehicle (starting a family here pretty soon) and was looking at the Malibu before the larger incentives were put on it.
3) I plan on keeping this car for about as long as it continues to move..so rolling in the extra money from my other loan won't be a big deal for me.
4) My trade-in (Nissan Sentra) was in excellent shape, had lower than average miles, but was in real bad need of new tires. The Chevy dealer I bought the Malibu from gave me the highest trade in price of any place I looked for a car at (was all set and ready to get a 2005 Altima until Nissan dealer came back with a trade in that was going to have me adding 3k back into my new loan) So, the way I look at it, not only did I gain 1,500 dollars in that respect, the day before I bought the Malibu incentives went up another 1,500 dollars (from 2k to 3.5k) and I was all set to buy it with the 2,000 cash back, so it was just luck for me to get that extra amount of cash back. The rebates were far from the only reason I bought the Malibu too...I love it. My Dad has the "S-Plan" through Mazda, where I could have basically got a 2004 Tribute, with rebates and my Dad's discount, for about 7,500 off sticker....but I wanted the Malibu. So, what I guess I'm trying to sum up here is that there are still people out there, myself included, that buy GM (or any American car for that matter) products because they actually WANT them and not just because they come with hefty disounts.

---------------
fighter0410

It's great to hear your good experience, fighter. I hope there are more like you out there, willing to look at a great product being offered for a great price, instead of dismissing anything GM does.

Keep us posted on how well you like the new Malibu!

 

[rme8494]

Originally posted by gonenuts15792@Jul 16 2004, 12:13 AM
I'm buying a 2004 Suburban and today I went to price one. I was looking at a loaded Suburban LT for $50,000, and asked what the rebates were, he went and checked and came back saying that I will get $13,000 off. My jaw dropped, I was expecting a significant rebate, but never that much. With my trade in and rebates I'm only going to be paying out of pocket $13,000. :woot2:

That is huge?? Where did you get your new 'Buran' at?

Ryan

 

[GMFreak8]

Originally posted by rme8494+Jul 16 2004, 03:04 PM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (rme8494 @ Jul 16 2004, 03:04 PM)</td></tr><tr><td id='QUOTE'> <!--QuoteBegin-gonenuts15792@Jul 16 2004, 12:13 AM
I'm buying a 2004 Suburban and today I went to price one.  I was looking at a loaded Suburban LT for $50,000, and asked what the rebates were, he went and checked and came back saying that I will get $13,000 off.  My jaw dropped, I was expecting a significant rebate, but never that much.  With my trade in and rebates I'm only going to be paying out of pocket $13,000. :woot2:

That is huge?? Where did you get your new 'Buran' at?

Ryan [/b][/quote]
I'm getting it at Davidsons GM Super Center of Watertown, New York. I still can't believe the discounts I'm getting.

 

[fighter0410]

Originally posted by doh@Jul 16 2004, 07:01 PM
Sorry fighter

My trade-in (Nissan Sentra) was in excellent shape, had lower than average miles

was a big part of it. No incentives on a new Sentra to lower the value of the used one.

I plan on keeping this car for about as long as it continues to move..so rolling in the extra money from my other loan won't be a big deal for me.

Did you plan on keeping the Sentra only 1 year?

I had planned on keeping the Sentra a little longer than I did until I started working a bit further away from home and began considering a family...a lot changed in a year and I didn't see the Sentra fitting the lifestyle needs that are going to arise in my life in the next decade. I bought the Sentra used...it was 3 years old when I bought it...so I didn't want to pay on that for the next 4 years (I had a 5 year loan) and be stuck with an 8 year old car so I just decided to get something bigger/newer. Plus the Sentra had stupid little things go wrong with it that just irked me. Like the horn going out and the oil dipstick breaking off down in the tube (anyone who has a yellow plastic finger pull on your dipstick beware) They really didn't have anything to do with me trading it in, but it definitely left me with no regret. I had a 97 Neon before the Sentra and that thing was a PoS when I got it but I kept it for two years and didn't but a penny in it except for oil...so I regretted getting rid of it....especially since the kid who bought it down the street seems to still have good luck with it, lol. But for a 'japenese import' I expected just a little bit better quality...especially on stuff like that...because you don't really think about the dipstick or horn as possible quality issues when you buy a car.
--------------
fighter0410

 

[rme8494]

Originally posted by gonenuts15792+Jul 16 2004, 08:09 PM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (gonenuts15792 @ Jul 16 2004, 08:09 PM)</td></tr><tr><td id='QUOTE'>

Originally posted by [email protected] 16 2004, 03:04 PM
<!--QuoteBegin-gonenuts15792

@Jul 16 2004, 12:13 AM
I'm buying a 2004 Suburban and today I went to price one.  I was looking at a loaded Suburban LT for $50,000, and asked what the rebates were, he went and checked and came back saying that I will get $13,000 off.  My jaw dropped, I was expecting a significant rebate, but never that much.  With my trade in and rebates I'm only going to be paying out of pocket $13,000. :woot2:

That is huge?? Where did you get your new 'Buran' at?

Ryan

I'm getting it at Davidsons GM Super Center of Watertown, New York. I still can't believe the discounts I'm getting. [/b][/quote]
Good for you.... I'm hoping to get Colorado soon.. I can only hope for such a good deal.

 

[GMFreak8]

I love the Colorado.