Let the incentive wars begin!
Following news that Chrysler will start up employee pricing discounts again this summer, General Motors is jumping into the sandbox, only this time taking another tack -- zero percent financing for six years for many 2006 models, which is expected to be announced next week. It's a way for General Motors to stick by its word that it will continue to be a proponent of value pricing and still fight to keep the market share that has slowly been slipping away from its fingertips.
So far, the only incentive plan outlined by Ford for the summer is $1,000 gas cards, but expect the Dearborn-based automaker to come up with something a little sweeter as the days get hotter.
[Source: Detroit Free Press]
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Reader Comments (Page 1 of 1)
Finished.Law.School 5:29PM (6/23/2006)
I am not sure Ford can really afford to give incentives but at the same time, considering competition, Ford can't afford not to give incentives.
Will a GM last for the 6 years that someone is taking to pay it off? Granted that a majority of GM technology being used in their vehicles (and proposed designs) is from the 60s showing that they should last at least this long...
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ron 5:38PM (6/23/2006)
I hear it's only going to be Chevy that offers the 0%. I hate this because I sell Cadillacs and odds are they won't have the 0% on the Cadillacs, but if I was a customer I'd look this weekend but wait until GM announces the incentives. That means for me, a weekend of lookers, waiting for the new program, which doesn’t put money in my pocket.
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tekdemon 6:06PM (6/23/2006)
lol posts like finished law school's are probably why crazed domestic fans make equally stupid posts about toyota in every topic.
Whatever, I'm just happy that GM is sticking by their guns and helping to boost resale value on their vehicles.
Ford execs are currently trying to figure out what to do about their super-profitable F-series coming under serious attack soon by GM and Toyota. So apparently they're having "war room" sessions.
But like one of the GM execs said..."When our product comes out it's going to be more like a bomb shelter."
Expect to see HEAVY cuts on the F-series this fall, and expect to see GM stick by their guns, boost resale value, boost profit margins, and become the awesome car company they're fully capable of being.
I see GM taking Ford market share until GM's healthy again. And then...maybe it'll be able to start fighting over North American turf with Toyota again. In the meantime GM's not going to let go of it's lead internationally.
Is my post biased? Haha perhaps, but then again I drive a Toyota, so it's not like I'm some GM looney-fan.
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Aaron 6:07PM (6/23/2006)
I saw a commercial for Ford today and it says 0% or $3000 cash back * on some car * dont remember.. maybe it was the F150 or explorer?
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shiznannigan 7:07PM (6/23/2006)
Something I've noticed is that, while import automakers don't generally do large rebates, the dealerships that sell them DO give rebates. And because it's local, nobody really seems to notice (meanwhile, the automotive press is crying about domestic automakers giving incentives as small as gas cards).
My question is, why can't Ford do this? Keep the rebates local, and stay out of the news.
ps... congrats to GM for sticking to their guns (so far)
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John 7:43PM (6/23/2006)
I recall Mitsu did a 0% for 5 years with $0 down deal back a few years ago. They got in serious trouble with lots of buyers getting the financing with less than stellar credit, and then they had to re-po a whole bunch of the cars as the dealers' push to convince people to get the cars didn't address the issue that these same people couldn't actually make the monthly payments.
The result was a massive earnings restatement that was probably lost since they were also hit with the defect scandal, DCX turning away, and general investor apathy for the company.
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Fabulo 2:14AM (6/24/2006)
"I'm just happy that GM is sticking by their guns and helping to boost resale value on their vehicles."
Pfff... it's like shiznannigan said. They're just waking up to their competitors' tactics. GM said something to the effect they won't bring back the nationwide incentive program.
They changed it to 'local' incentive (in this case, local means 2 or 3 contiguous states)
A local (OR) dealer was advertizing 2006 tahoes for $12,000 off msrp about 2 month ago. I just checked around, Imapalas go with about $2,000 rebates on the the hood. Malibus V6 with around $1,200.
It's still going on. They can't stop it. As long as they manufacture more cars than they can sell, they'll have to discount them.
If they are not selling when they are new, it's not gonna help the resale value when they are used.
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Ben 7:14AM (6/24/2006)
Just heard on the radio this morning that Ford is offering employee pricing on all 2006 and some 2007 models. On top of that, there is customer cash up to $3500 and 0% financing on select models.
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GhostDoggy 11:12AM (6/24/2006)
I really do not know what all of the hub-bub is about when mentioning 0% financiang and eployee pricing, because usually consumers will find exclusions to make this propaganda moot.
What good is it if I cannot get 60-month 0% financing of a 10% employee discounts Chevy 'vette or BMS Z4 M Coupe? One can already find good deals on boring family cars, because no one wnats the ugly ducklings in the first place.
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Michael Karesh 10:48PM (6/24/2006)
When these deals go into effect, my site will reflect them. Just added ability to adjust rebate when low rate financing is selected, and to display low rates.
Bottom line: it'll be possible to compare employee pricing deals with 0% deals.
Go to the following page once these deals go into effect:
http://www.truedelta.com/prices.php
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