Since July was a poor month for U.S. models will it be reflected in large rebates or "family plans"?
Poor Sales = Large Rebates?
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They've been trying to stay away from that, especially GM, as it hurts profitability and resale value. I'd look for added incentives, like Chrysler's lifetime powertrain warranty, instead of rebates. Chrysler is also currently offering 0% financing on some models.
Rebates have to me always suggested an overpriced product.
Unless August sales are significantly better, we will be seeing large rebates, along with interest free financing, to clear the huge inventories of certain '07 models. If you really need or want a new ride, start shopping after Memorial Day. There should be some real giveaways.
Kestas
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Like Matt said, the incentives aren't always in the form of rebates. I've seen many downturns in the automotive industry, and they often enhance the car's warranty. This is a bonus to the customer, and the company can afford the cost when, hopefully, the market bounces back and the automaker can pay the extra warranty costs.
MSRP of 2004 Silverado 4x4 was $25,645
Yeah... I know that cost is meaningless but it works as a basis for comparison.
Last part of June 2004 and read that sales were way down.
Various rebates offered.
Played several dealers against each other.
One dealer offered the lowest price... it slowly came down and down until it beat the competitors. Dealer even threw in a "rebate" GMC was giving the dealers at the time... an extra $500 for every truck sold.
Paid $20,200
I know the dealer made some money but according to various sources it wasn't a huge amount.
Bargain hard even when rebates are present.
Play dealers against each other.
E-mail can be a great way to initiate bargaining.
When sales are down it can be a buyer's market.
Timing helps. Right time of month and year, etc.
I knew the salesman wasn't going to make much from this sale so I slipped him a $20 to buy his kids lunch or whatever.
Guy was shocked and seemed to try to do all he could to get the cost down.
Yeah... I know that cost is meaningless but it works as a basis for comparison.
Last part of June 2004 and read that sales were way down.
Various rebates offered.
Played several dealers against each other.
One dealer offered the lowest price... it slowly came down and down until it beat the competitors. Dealer even threw in a "rebate" GMC was giving the dealers at the time... an extra $500 for every truck sold.
Paid $20,200
I know the dealer made some money but according to various sources it wasn't a huge amount.
Bargain hard even when rebates are present.
Play dealers against each other.
E-mail can be a great way to initiate bargaining.
When sales are down it can be a buyer's market.
Timing helps. Right time of month and year, etc.
I knew the salesman wasn't going to make much from this sale so I slipped him a $20 to buy his kids lunch or whatever.
Guy was shocked and seemed to try to do all he could to get the cost down.
Rebates can also mean high inventory. I think GM's biggest rebates are on their biggest sellers, trucks/SUV's.
Rebates are also used when model change comes around to clean out old inventory.
Rebates are also used when model change comes around to clean out old inventory.
IMHO, rebates are an oversupply to the demand.
The Big three have gotten sharper on not building cars to keep people/factories running.
One sad case is Daimler-Chysler who has lots filled with 2006's brand new that are now being rented/used for the 1000 miles to make them used car and then being sold. This is being done I believe to not make buying 2008 look really bad on essentially the same outdated product 2 years newer. I can just picture those slightly broken parking lots with weeds up the doors with brand new cars parked.
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