2010 Car Deals – Better or Worse?

December 24, 2009

happynewyear-20101 As we enter the first months of 2010, we find the automobile industry in sad shape. Sales are at record lows. Entire brands, such as Pontiac and Saturn, have disappeared. Manufacturing has been cut back on remaining brands. Fewer models are being offered. Dealerships have gone bankrupt or cut out by their car makers.

That’s the bad news.

However, the good news is that it’s a great time for automotive consumers.

Prices have never been lower.

Nearly every car company is offering incentives in the form of generous rebates, 0% APR loans, low interest loans, special lease deals, and hefty factory-to-dealer cash that usually finds its way back as customer price discounts. It’s a great time to buy a new car.

Given that the economy is slowly improving, the automobile industry and sales will also improve in 2010. But it won’t happen at a fast enough rate to satisfy car manufacturers. And it will take more than one year to even start getting back to normal.

Therefore, we will see more new-car incentives and low prices in 2010.

Will it be as good as 2009?

Nobody can tell. As usual, we won’t know, and dealers won’t know, until the actual announcements are made. When we know, we’ll let you know.

Outlook
If 2010 is similar to 2009, we should expect to see some of the best deals on American car brands (Ford, GM, and Chrysler), especially on leftover 2009 models.

Japanese and Korean brands will offer better incentives in 2010 than in 2009.

[EDIT: Considering recent problems with Toyota vehicles, expect to see some outstanding Toyota deals after the fix. For more details, see "Toyota Fire Sales Soon?"]

Luxury brands such as Lexus and Acura and European brands such as BMW, Mercedes, and Audi will continue to offer “hidden” incentives in the form of special leases and factory-to-dealer rebates. Look for some of the best incentives in the first quarter of the year — January through March. Depending on how the auto industry begins to recover, incentives later in the year could be better — or worse.

Meanwhile, have a happy and prosperous 2010. We have appreciated your visits and your interest in our sponsors, without which we would not be able to operate this web site.

You can get free price quotes on any currently available new vehicle from Edmunds.com.The quotes will automatically include any cash-back rebates or discounts that are currently available.