Car Deals in 2010 – What’s Happening?

September 1, 2010

Best Car Deals in 2010

This year – 2010 – is shaping up to be one of the best ever for automotive consumers. We are seeing more rebates, 0% APR loans, special lease deals, and other incentives than we’ve seen in a long time.

If you’re in the market for a new car, 2010 will be the year to make your move.

At no time have we seen as many rebates and 0% APR loans as we see at this time. Where zero percent loans in the past were limited to short-term (24-36 month) loans, now we’re seeing them for long-term (72 month) loans as well.

Rebate amounts are substantial, particularly on leftover 2010 models after 2011 models are out. Dealers are getting large “marketing support” cash rebates, that usually end up as price discounts to customers. It’s common now to be able to buy at car for less than dealer invoice price.

Old car buying rules don’t apply anymore. This is a new age of car buying, with new rules.

Leases are back in strength, particularly with non-American brands. Nearly all Japanese and European brands currently offer special lease deals on at least some models and styles. Honda and Toyota have some of the best car leases at this time.

American car makers are going to be slow to return to leasing because they lost their shirts over the last few years when they were far too aggressive, losing millions of dollars. Although lease deals won’t be quite as good as in the past, leasing has always been popular with automotive consumers and will continue to be. For more information about leasing, see LeaseGuide.com.

Right now, nearly every car manufacturer is offering some kind of incentives. There are, of course, some traditional hardcore holdouts, such as Porsche, Mercedes, BMW, and Lexus, whose offerings are less than aggressive (because they don’t want to be viewed as a “discount” brand). But the good news is that even these companies are offering a few incentives now where there were almost none before.

Why is this happening?

A number of things are coming together to make it happen.

First, although the economy is ever so slowly climbing out of its slump, consumers are still a bit cautious. So car makers feel they need to give buyers a “push” to start buying again. Because the market has been reduced by the recession, car makers must fight for the smaller amount of business. Offering incentives is the way to compete and gain customers.

Second, American car companies (GM and Chrysler) are recovering from their near-bankruptcies last year and are repaying their government bailout money. However, the company to watch, which required no bailout, is Ford. Ford’s products have made the most significant improvements in both style and quality. The Ford Fusion was Motor Trend’s Car of the Year for 2010.

Another factor that has created the current frenzy of incentives is the ”Toyota Situation.” Toyota was on top of the world before their recent highly publicized problems. They were a top seller and needed no incentives. Now, Toyota is working its way out its problems. However, to restore customer confidence, they are offering across-the-board 0% APR loans and some of the best lease deals going at this time.

This has created a “feeding frenzy” among other car brands who want to take advantage of Toyota’s temporary difficulties. Everybody wants their piece of Toyota’s action before the company gets completely back on its feet. Since Toyota’s return will be slow, we believe the intense competitive environment will continue throughout 2010.

Again, 2010 will be a great year to buy a new car.