Due to the collapsing economy, auto sales have certainly taken a nose dive, which is why this is the very best time to buy a new vehicle.   Automakers are – for what may be the very first time in history - taking the sting out of buying a new vehicle by offering deep cuts and incentives which previously have not been available.  Used car dealers have jumped on board as well and are offering more incentives by slashing prices and being more receptive to consumer wants and wishes. 

While some of the big cuts may be on 2008 model close-outs or more expensive 2009 models, it’s still a good idea to check out what they have to offer – especially since this could be the one and only time you may be able to afford something you previously thought was way out of your price range or monthly budget.

While everyone is always looking for a good deal, now consumers are actually finding them; new car prices are at an all time low with incentives that are hard to resist.  Combine that with today’s fuel prices – which have dropped considerably over the last two months – and you’ve finally got yourself a true buyers’ market.  Gone are the days of being a stickler for sticker prices; dealers are more willing than ever to give deep discounts, right along with the manufacturer.   Rebates are topping $7,000.00 - the highest they’ve ever been - which doesn’t include additional manufacturer incentives that when added to dealer rebates, could take $10,000.00 off of the sticker price. 

If there is a downside, it’s that auto lending firm GMAC announced on Monday that it plans to restrict financing by withholding money to buyers who have credit scores lower than 700:  

In light of the disruption in the credit markets, GMAC NAO is announcing a temporary, more conservative purchase policy for retail auto contracts in the United States. In the short term, we will limit auto contracts to those consumers who have a minimum 700 credit bureau score, with an advance rate equal to or less than dealer invoice. This means that consumers will be required to make a down payment. In addition, we will restrict approval of contract terms beyond 60 months, except for those customers qualifying for GM-supported 72-month incentives currently advertised.

These are extraordinary times, and we must take these prudent steps to focus our resources on high quality retail contracts and critical areas such as dealer wholesale financing, until the credit markets are stabilized. To assist dealers, GM has enhanced its retail incentive programs in October to utilize more cash incentives. GM and GMAC will continue to work collaboratively through these challenging financial market conditions.

Barbara Stokel
Executive Vice President, North American Operations

According to experts, the lower prices will likely be around for some time – or at least until the economy improves and consumers nationwide can once again begin to purchase more automobiles.

Here are 10 of the biggest offers currently available:

• 2008 Infiniti QX56 and M45: $7,000.00 factory-to-dealer incentive
• 2008 Ford F-150: $4,500.00/$7,000.00 cash back or 0 percent to 5.9 percent financing
• 2008 Mercedes-Benz E-class and SLK-class: $6,000.00 factory-to-dealer incentive
• 2008 Chrysler 300C: $5,250.00 to $6,000.00 cash back or 0 percent to 7.9 percent financing
• 2008 Ford F-350 Super Duty and F-250 Super Duty:  $6,000.00 to $7,000.00 cash back or 0 percent to 3.9 percent financing
• 2008 Mercury Mountaineer: $5,000.00 to $6,000.00 cash back or 0 percent to 1.9 percent financing
• 2008 Dodge Ram 1500: $5,000.00 to $6,000.00 cash back or 0 percent to 5.9 percent financing
• 2008 Toyota Tundra: $1,800.00 to $6,000.00 cash back or 0 percent to 1.9 percent financing

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