What we mean is that you would have to know the best time of day/month/year to buy, know your invoice prices and holdbacks, and know how to skillfully negotiate prices — and be prepared to go into long stressful haggling sessions with dealer salespeople who would try every trick in the book to wear you down — not a pleasant experience.

Not that it still doesn’t happen. It’s even necessary in many cases. But the best car deals are not made that way. Car manufacturers, in these tough economic times, are hungry for your business and are willing to offer ready-made deals that were unheard of in the past. These are deals that buyers could not possibly negotiate for themselves — because dealers are not capable of making the kind of concessions that their deep-pockets parent car companies can make.

Car manufacturers announce new incentive programs almost every month. These are special limited-time deals in the form of customer rebates, “employee” pricing, low-interest loans, 0% APR loans, special leases, loyalty bonuses, “conquest” bonuses, military bonuses, and “hidden” factory-to-dealer cash. The deals are usually limited to certain selected models and styles in any given month. And there may be restrictions, credit requirements, or down payments to qualify.

These monthly deals from car companies are nearly always genuinely good deals — often great deals —  and well worth customers’ consideration.

All car companies don’t offer incentives. Some luxury brands never offer advertised incentives which might brand them as a “discounter.” Some have hidden incentives that aren’t made public but are offered to potential customers in the store.  Others may offer special lease deals and “bonuses”, but never rebates or discounts.

In summary, the best car deals are the promotional incentives that are offered each month by car manufacturers, which require no negotiation and no stressful haggling. You can get free price quotes from Edmunds or TrueCar. The quotes will automatically include any promotional incentives that are currently available.

We tell you about the best new car deals every month here on this web site, Best Car Deals. Please stay tuned.

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Although no more Mercury vehicles are being made, dealers still have leftover inventory and are offering them at very attractive prices based on heavy factory-to-dealer rebates. These rebates are not announced to the public but are reflected as price discounts when customers buy the vehicles. Dealers have the option of giving some or all of the rebate amount to customers.

Ford has gone to great lengths to assure Mercury customers and new buyers that warranties will be honored and that service and parts will be available for years to come at Ford dealers.

The only “catch” in these great deals is that you might have trouble finding exactly the vehicle you want at your dealer. Supply is limited and you might have to shop around to find a dealer that has just the right vehicle.

Although the price discounts will be available all this year, or until supply runs out, you should act as soon as possible if these deals are of interest to you. Also be sure to ask the dealer to contribute with additional price discount of his own.

Here are the current “hidden” factory-to-dealer incentives for Mercury:

 2010 / 2011 Mercury Grand Marquis – up to $5500

2010 / 2011 Mercury Mariner – up to $3500

2010 / 2011 Mercury Mariner Hybrid – up to $1500

2010 / 2011 Mercury Milan – up to $3500

2010 Mercury Milan Hybrid – up to $3000

2011 Mercury Milan Hybrid – up to $1500

You can get free price quotes on any of the above Mercury vehicles from Edmunds.com.The quotes will automatically include any cash-back rebates or discounts that are currently available.

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We won’t really know what November 2011 car deals will look like until a few days into the month when new incentive programs are announced to dealers. 

However, as always, we try to take a look ahead to see what we might expect.

We still haven’t seen the expected incentive war that could be started by Toyota and Honda having now returned to full production after the Japanese earthquake earlier this year. We feel that when they get the pipeline filled and get plenty of cars on dealers’ lots, these companies will begin offering some very attractive car deals to bring customers back to their showrooms. Of course, this will lead other car companies to offer even better incentives to keep customers from running back to Toyota and Honda. It’s going to be interesting, whenever it starts — maybe in November.

Let’s take a look at what we know now. 

There are a few good long-term incentives out there that are worth considering. These are typically for left-over 2010 models and come in the form of factory-to-dealer cash that dealers give back to customers as price discounts. The deals expire around December 31 — or when all the vehicles have been sold. Here are some examples:

2010 Nissan 370Z Convertible – $1500 factory to dealer cash

2010 Saab 9-3 Convertible – $6000 factory to dealer cash

2010 Saab 9-3 Sedan and Wagon – $4500 factory to dealer cash

2010 Saab 9-5 Aero Sedan – $5500 factory to dealer cash

2010 Mitsubishi Endeavor – $4500 factory to dealer cash

2010 Mitsubishi Eclipse and Spyder – $3000 factory to dealer cash

2010 Mitsubishi Galant – $3500 factory to dealer cash

2010 Mitsubishi Lancer Evolution and Sportback – $2000 factory to dealer cash

2010 Mitsubishi Outlander – $2000 factory to dealer cash

2010/2011 Mercury Grand Marquis – $5500 factory to dealer cash

2010/2011 Mercury Mariner – $3500 factory to dealer cash

2010/2011 Mercury Milan – $3500 factory to dealer cash

2010 Mercury Milan Hybrid- $5500 factory to dealer cash

If you are interested in any of these deals, you should expect your dealer to give you an additional discount (from his own pocket) on top of the factory-to-cash he’s getting from from his car company.

You can get free price quotes on any of the above cars from Edmunds.comThe quotes will automatically include any cash-back rebates or discounts that are currently available.

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Factory-to-dealer incentives are unique because they are “secret” and not visible to customers like other incentives that are heavily advertised.

Sometimes called “marketing support”, factory-to-dealer cash travels from a car manufacturer directly to a dealer when a vehicle that has that incentive is sold. In effect, it is a rebate to a dealer.

A dealer can use these  manufacturer’s rebates in almost any way he wants that helps sell the vehicles on which the incentive applies. He might, for example, spend some of the money on a special sale event, advertising, or TV commercials. However most if not all of the money will be applied as a price discount to create attractive sale prices on selected vehicles.

Dealers might advertise (or not) the special prices made possible by factory-to-dealer rebates. Some luxury brand dealers prefer not to heavily advertise “sale” prices to avoid the brand being viewed as a “discount” brand. They prefer to offer the discounts face-to-face with customers, or let the customer “negotiate” for the discount. It makes the customer feel better if he thinks he’s the only one getting the discount.

Factory-to-dealer rebates are generally larger on hard-to-sell car models or on last year’s leftovers, but are not uncommon on even the latest models if the car company is trying to get off to a fast sales start on those models.

If you find a vehicle you like that has a nice factory-to-dealer backed discount, you should also expect your dealer to kick in an additional discount of his own — manufacturer-backed discount plus dealer-backed discount equals big discount.

When we find large factory-to-dealer and marketing support incentives, we tell you about them on this web site.

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

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Maybe you need a new car but are not the type of person who spends hours and days reading car magazines, visiting car web sites, talking cars with friends, or comparing cars at dealers. You simply want a good car at a good deal without needing to be a car guru.

If you knew which cars are the most popular with other buyers, you could safely make the assmption that most of those buyers were making informed and intelligent decisions — and that you would be smart in making the same choices.  

We list the top ten vehicles in sales volume for the first nine months of 2011, as provided by Automotive News.

1. Ford F-Series trucks

2. Cheverolet Silverado trucks

3. Toyota Camry

4. Nissan Altima

5. Honda Accord

6. Ford Fusion

7. Ford Escape

8. Chevrolet Cruze

9. Toyota Matrix

10. Ram (formerly, Dodge Ram)

In analyzing the list, we find it no great surprise that pickup trucks hold the two top spots, and tenth spot. Trucks are popular as both personal and work vehicles, and are important utility vehicles in rural areas of the country.

The Toyota Camry holds the top spot among cars, as it has for years. It’s a great all-round car with most of the characteristics that people look for in a new car — inexpensive, economical to drive, good styling, great reliability, cheap to insure, good performance, high resale value, and comfortable. The Nissan Altima and Honda Accord share in the same charactertistics, as does the Toyota Matrix.

The Ford Fusion is a popular family sedan that provides good value, excellent reliability, high safety rating,  and excellent fuel economy. Consumer Reports gives it a coveted “Recommended” rating based on a broad range of factors, including test drives.

The Ford Escape, a small SUV, has climbed up into the best-seller rankings and is now “Recommended” by Consumer Reports as having met CR’s stringent testing, reliability, and safety standards. It is a popular choice for those needing the extra space and cargo capacity of a good all-round SUV at an affordable price.

 The Chevrolet Cruze (replacing the old Cobalt) has steadly gained in consumer popularity. Although not particularly stylish, it provides good solid transportation at an economical price.

You can get free price quotes on any of the above cars from Edmunds.comThe quotes will automatically include any cash-back rebates or discounts that are currently available.

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Credit scores, which for most people falls between 400 (poor) and 800 (excellent), are a major factor in determining the cost of buying or leasing an automobile.  It determines what interest rate you’ll pay, or even if you can get approved at all. It also determines if you will be allowed to take advantage of special new-car incentives, such as 0% APR loan and lease offers.

You have three credit reports and credit scores, one set from each of the three major credit agencies in the U.S. — Equifax, Experian, and TransUnion. When you buy a car with a loan, or lease a car, the dealer and finance company checks your credit score with one or more of the three agencies. Scores can be slightly different (sometimes, more than slightly) from each agency and you can’t control which agency a dealer or finance company uses. 

You also can’t control how individual lenders interpret your credit score.  For some, a score of 700 is considered an excellent score; for others, 720 or higher. A score of 620 might shut you out of a deal with one finance company, but allow you to squeeze by with another, although at a high “subprime” interest rate.

If you don’t know your current credit score, it’s easy enough to get it from online companies such as FreeCreditScore.com. You’ll see what dealers and lenders see when they make decisions about your credit worthiness.

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To be clear, car companies don’t announce new incentives until after old incentives have expired. August incentives will end on August 31,  or September 5, or September 6, depending on car company. New deals will be announced soon thereafter. Even dealers don’t know what’s coming until the official announcements. 

September and October have traditionally been good months in which to buy or lease a new car. It’s because most of next year’s models are out or will soon be out and dealers have stock of this year’s models to sell off.  This year is no exception. 

We expect Honda and Toyota to be mostly back to full production after the recent earthquake event and they’ll be fighting to regain previous sales levels with some excellent incentives. We may also see some rare incentives on these companies’ luxury brands, Acura and Lexus. 

Other Japanese car companies such as Nissan, Mazda, Infiniti, and Subaru who were not as affected by the earthquake will have to up the ante with improved incentives to stay in the game. Nissan’s rebates on 2011 models average about $2500 and there are 0% APR loans on neary every model. We expect to see this high level of incentives continue into September — on 2011 models. 

American car manufacturers, Chrysler, Ford, and General Motors, have taken advantage of the Japanese situation in the last few months, offering some of the biggest and best deals in the industry, attempting to lure customers back. Chrysler and Ford currently have  rebates averaging about $2500 and 0% APR loan rates on nearly every 2011 model vehicle.

General Motors (Chevrolet, Buick, GMC, Cadillac) rebates are a bit smaller, on average, and 0% APR loans on slightly fewer models but nevertheless very attractive. We expect to see September incentives that are at least as good as August, if not better to compete with the expected aggressive campaigns from the Japanese companies. 

Now that many new 2012 models are out or will be coming out in September and October, we will see better incentives on those models, especially after leftover 2011 models have been mostly sold off. 

In summary, if you are in the market for an American car brand, it’s hard to see how deals on 2011 models can be much better in the coming months. Why wait? If you want a Honda or Toyota, or other Asian brand, waiting might be a good strategy. There will be good lease deals, but few rebates and zero percent loans, on European brands such as Volkswagen, BMW, Mercedes, and Volvo. 
 

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

General Motors  announced incentives in July that are good through August 2011. The company’s brands, Buick, Cadillac, Chevrolet, and GMC,   have deals on most of their vehicles, many on new 2012 models. However, the best deals are on 2011 models. All GM incentives expire on September 6, 2011. 

Here are some of the best GM car deals on 2011 models: 

Buick Lucerne – $2500 rebate or 0% APR financing 

Buick Enclave – $2000 rebate or 0% APR financing 

Buick LaCrosse – $1500 rebate or 0% APR financing 

Cadillac DTS and STS – $7000 rebate or 0% APR financing 

Cadillac Escalade – $3500 rebate or 0% APR financing 

Cadillac CTS – $2000 rebate or 0% APR financing

 

Chevrolet Silverado 1500 – $4000-$4500 rebate or 0% APR financing 

Chevrolet Avalance – $4000 rebate or 0% APR financing 

Chevrolet HHR (selected styles) – $3500 rebate or 0% APR financing 

Chevrolet Silverado 2500HD/3500HD – $3000 rebate or 0% APR financing 

Chevrolet Suburban and Tahoe – $3000 rebate or 0% APR financing 

Chevrolet Impala (selected styles) – $3000 rebate or 0% APR financing 

Chevrolet Malibu – $2500 rebate or 0% APR financing 

GMC Sierra 1500 – $4000-$4500 rebate or 0% APR financing 

GMC Sierra 2500/3500HD – $3000 rebate or 0% APR financing 

GMC Yukon – $3000 rebate or 0% APR financing 

Furthermore, there are good factory-to-dealer cash incentives available on a few 2011 GM vehicles for August 2011: 

Buick Regal – $1000 

Chevrolet HHR and Impala – up to $4000 

Chevrolet Corvette – $3000 

Chevrolet Aveo – up to $1500 

Chevrolet Malibu – up to $1000 

Honda, Acura, Volkswagen, Audi, and Volvo are other companies whose July incentives extend through August. 

Honda (most models) and Acura (selected models) are offering low-interest loan rates (0.9%-1.9% APR) on both 2012 and 2011 models.  Volkswagen offers 0% APR loan rate on the 2012 CC and Eos, 0% APR on the 2011 Eos, Routan, CC, and Tiguan, and low interest rates (1.9%-4.9%) on other 2011 models. Audi offers low interest rates (0.9%-3.5% APR) on 2012 models and 0.9%-2.9% on 2011 models. Volvo offers low interest rates on the 2012 S60 (0.9%-1.9%) and 0.9%-2.49% on all 2011 models. 

Other incentives worth considering in August are as follows:

BMW is offering lower interest rates on most its 2011 models, including 0.9% APR on the Z4 and 1.9% APR on the 3-Series and M3.

Ford and Lincoln have 0% APR loan deals on nearly every 2011 and 2012 model. Other models have very low interest rates. The company also offers rebates on most models as well, ranging from $500-$3000. Of course you much select either the rebate or the low interest loan, not both.

Kia has good rebate offers and low interest loans on most models, including $3000 rebate on the 2011 Kia Sedona and $2500 on the 2012 model.

Jaguar offers 0% APR loans on the 2011 Jaguar XF, XJ, and XK.

Mitsubishi stands out with 0% APR loans or nice large rebates on all models, including a $4500 rebate on the 2011 Mitsubishi Endeavor and $3500 on the 2011 Galant.

Nissan comes on strong in August with 0% APR loan deals on nearly every model including 2012 versions of the Altima and Sentra. Alternatively you can select from some very attractive rebates on most models including up to $5250 on the 2011 Titan, up to $4000 for the 2011 Altima Hybrid, $3500 on the 2011 Armada, and up to $3000 on the 2011 Frontier and Maxima.

Suzuki  also has 0% ARP loans or rebates starting at $1000 up to $2000 on the 2011 Equator.

Toyota has 0% APR loan deals on the 2011 Tundra, Camry, Avalon, Highlander, Sienna, Venza, and Corolla.

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

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Why are special lease deals offered by car companies better than any other type of incentives?

It’s true that lease payments are always less than loan payments for the same car, same term, and same down payment — even with a 0% APR loan. But that doesn’t necessarily make leasing a better deal. And it doesn’t mean that leasing is the best solution for all people.

What makes a good lease deal?

A good lease deal is one in which three different factors are being offered at better-than-normal values. First the price that the lease is based on must be discounted. Second, the money factor (lease finance rate) must be discounted. Finally, the lease-end residual value must be boosted higher than normal.

Car companies like to create good lease deals because it delays their financial impact (losses) that come with any kind of incentive. While the impact of a price discount or rebate is immediate, the effects of a low finance rate are spread over the life of a lease or loan. And here’s the real kicker — the impact of setting a high lease residual value doesn’t come until the end of the lease, when the customer returns his car.

Furthermore, a lease is the only way a customer can get both a price incentive (“rebate”) and a reduced financial rate at the same time. As you may know, if you buy with a loan and the car is being offered with either a rebate or low interest rate, you must take one or the other but not both.

Therefore, if a car company is offering rebates, low-interest loans (even 0%) and special lease deals on a particular vehicle, the special lease will always — always — be the best deal.

However, before you lease you should understand how leasing works and if leasing is right for you. We suggest you visit LeaseGuide.com before you make your decision.

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Not true. That’s old outdated thinking.

The best deals are the ones that are given to you, with no negotiation required, by automakers and their “captive” finance companies.

You see, dealers control only one factor in a car deal — price. And that’s only to a limited degree because he (the dealer) must work within his relatively small range of potential profit, which can vary between about 4% and 12% of MSRP depending on brand and model. There are also holdbacks and possible sales bonuses that reduce his cost but a dealer cannot sell cars for little or no profit without going out of business.

The best car deals are those that are incentivized by car manufacturers, combined with contributions from dealers. Car companies can control all factors in a purchase or lease deal — price, rebates, factory-to-dealer cash, interest rate,  lease money factor, lease residual values, and lease mileage allowances.

With this wide range of control, car companies can, and do, offer limited-time special deals that automotive consumers could not possibly negotiate for themselves. Without such help from the parent car company, dealers could not sell or lease cars on such attractive terms.

We often hear car buyers brag that they’ve just made a new-car purchase for less than dealer invoice price. They may not be aware that they’ve been given “help” from the car manufacturer, possibly in the form of a hidden factory-to-dealer rebate. Actually, in those cases, negotiation skills may be useful because a dealer is not obligated to give away all his factory rebate. This is especially true when buying luxury car brands, such as BMW, because luxury car companies don’t like to be viewed as “discounters.” 

In summary, to get the best car deals, look for the limited-time promotional incentivized deals that include rebates, bonuses, low (or 0%) interest rates, or special lease offers. These are almost always good-to-excellent deals — and better than any deal you could negotiate on your own.  However, the “catch” is that only selected models and styles may be available with the special terms. If you are flexible in your choices, you can take advantage of these deals and save some serious money — with little or no work.

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

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All the deals expire either on June 30 or July 5, depending on company.

All are based on either 10,000 or 12,000 miles per month and require an amount due at signing, which includes a down payment and first months payment.

Many of the deals are also available with no down payment, however monthly payments will be higher. First month’s payment would still be due at signing.

None require a security deposit for customers with good credit.

Shown below are the current special car lease deals for June 2011 that have payments of less than $200/month:

If you want to better understand how car leasing works and how to determine if you are a good leasing candidate, please visit LeaseGuide.com.

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It has directly affected Japanese carmakers such as Honda, Toyota, Nissan, and Mazda to the point that production has been significantly reduced and, in the case of some models and styles, actually halted.

However, the indirect effects may be even more significant. Many American carmakers depend on parts and electronic components from Japan. For the lack of a single part, a car cannot be built. Therefore, we’ll see may see shortages across the board, regardless of where manufacturing takes place.

What does this mean for car deals in May 2011?

We might be wrong — and we hope we are — but we believe that the great new-car purchase and lease incentives that we’ve come to know in the last few months will be grinding to a virtual halt beginning in May 2011. And it could last for many months. When supplies are limited and demand is high, there’s no need for sales incentives.

Sure, we’ll see continuing incentives, although not as good, on leftover 2010 models, and even on some 2011 models that have already been replaced by 2012 models. Some brands such as Korean Hyundai and Kia that have not been heavily affected by the earthquake may take advantage and offer new incentive programs.  European brands such as BMW, Mercedes, and Audi may also continue offering modest incentives on selected models and styles.

The bottom line is that we think new-car deals for May 2011 will not be nearly as good as in the past. You’ll have to look longer and harder to find good incentives.  Even without incentives, you might find it difficult to find the exact model and style you want. Unfortunately, this situation will not go away overnight. It will be some months, maybe into next year, before things return to normal.

We at Best Car Deals will also have to work harder to find the good deals and incentives to post here on this web site. So, stay tuned. We’ll do our best .

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Much of the reason for the decline this month was precipitated by the huge earthquake in Japan in March. Many Japanese car manufacturers were knocked offline and many of those who recovered are still not at full capacity. Parts suppliers were also affected, which in turn affects car manufacturers, even those in the U.S. All of this has created shortages in new-car inventories at dealers, which obviates the need for heavy sales incentives. 

For example, we’ve seen only a trickle of new incentives from Toyota. Honda, Acura, Cadillac, Chevrolet, and a few others had already announced April incentives before the quake. These incentives still appear to be in place and have not been withdrawn, but we expect near-future incentives to be at best modest, and at worst non-existent.

The best deals continue to be on leftover 2010 models at dealerships. Dealers must get rid of these older models and are offering rebates, low-interest loans, and factory-to-dealer cash to help move them. However, expect choices to be limited, especially as more people find they can’t buy the new 2011/2012 model they want.

Here is a summary of some of the current incentives for April 2011:

Mazda – Modest rebates ($500) on many models, 0% APR loans on selected models, and a few good lease deals on specific styles of the 2011 CX-7, CX-9, MAZDA3, MAZDA5, MAZDA6, and MX-5 Miata. Good factory-to-dealer cash is also being provided on most leftover 2010 models (up to $4000 on 2010 CX-8 and 2010 MX-5 Miata, up to $3500 on 2010 Tribute and 2010 CX-9, up to $3000 on 2010 CX-7, up to $2500 on 2010 MAZDA5, and up to $2000 on 2010 MAZDA3).

Hyundai – Modest to fair rebates on many models — generally in $400-$500 range except $1500 on 2011 Genesis; $1000 on Veracruz, Equus, Sante Fe). Higher rebates are available on many leftover 2010 models. 0% APR interest rate loans are available on the Veracruz and Genesis, and slightly higher rates (1.9%) are available on a number of other models and styles.

Nissan – Good rebates are being offered this month on a few models/styles (up to $3500 on 2011 Titan, $2500 on 2011 Pathfinder, $2000 on 2011 Frontier, $1500 on 2011 Maxima). Larger rebates are offered on remaining 2010 models. 0%/0.9% APR loans for up to 60 months are also available for many models. Nissan is also offering healthly factory-to-dealer cash ($2000) on 2010 models of 370Z, Maxima, Pathfinder, and $1750  on the 2010 Xterra, and $1500 on the 2010 Versa.

Infiniti – Low interest rates (0% APR on 2011 G37 Convertible; 0.9% on 2011 EX, FX, G Coupe, G Sedan; and 1.9% on the 2012 M, 2011 M37, M56). Special lease deals have been announced for some styles of the 2011 EX, FX, G Coupe, G Sedan, 2012 M, 2011 M56, and M37. Large factory-to-dealer cash is offered on many 2010 models — EX35 (up to $4000), FX35 (up to $6000), FX50 (up to $7000), G37 (up to $3000), and QX56 (up to $7000).

BMW – Special leases are now available for the 2011 1-Series, 3-Series, 5-Series, 7-Series, X3, X5, X6, and Z4. Low interest rates (as low as 0.9% APR) are offered on most models. The 2010 6-Series comes with an incredible $15,000 factory-to-dealer cash deal.

Ford – Very modest rebates, averaging about $500, even on 2010 models. Low-interest loan rates in the range of 0% APR to 2.9% APR are also being offered.

Chrysler – Good factory-to-dealer incentives on some leftover 2010 models — $6750 on 2010 Chrysler 300, $5500 on 2010 Chrysler Sebring and Town and Country, $3750 on 2010 Chrysler PT Cruiser.

Edmunds.com.The quotes will automatically include any cash-back rebates or discounts that are currently available.

You can get free price quotes on any of the above vehicles from

The new special leases from Honda come in the form of $0 down, $0 security deposit, and $0 first month’s payment with 12K miles allowed per year. These are all genuinely good lease deals, as verified by LeaseGuide.com.

Interestingly, Honda also offers the same deals but with a lower monthly payment and an up-front down payment requirement.  It doesn’t change the value of the deal; it simply allows you to lower your payment if you can afford to pay some cash up front — or if you have a trade-in vehicle.

Notice the new lease deal on the most-popular Odyssey minivan. We haven’t seen any kind of deal on the Odyssey in quite a while, so this is hot.

What’s the catch with these great deals? Although the special leases are available on many of Honda’s vehicle models, they typically only offer the deals on one style within a model line. If you like that model/style, fine. If not, you’ll have to get a normal non-promotional lease, which is not all bad since Hondas always make good lease vehicles due to their high lease-end residual values.

Here are the current (3/1/2011 through 5/2/2011) special deals from Honda. All are for 2011 vehicles except where noted.

Honda Crosstour EX - $130/month or $239/month with down payment

Honda Accord LX Sedan – $250/month or $209/month with down payment

Honda Civic Hybrid – $260/month

Honda Civic VP Sedan – $190/month, or $139/month with down payment, or $149/month for LX style with down payment

Honda CR-V LX – $270/month or $219/month with down payment

Honda Fit – $220/month or $159/month with down payment, or $139/month for 2010 model with down payment

Honda Insight – $230/month

Honda Odyssey LX – $380/month or $319/month with down payment

Honda Pilot – $380/month or $299/month with down payment

Again, these Honda lease deals end on May 2, 2011 which gives you some time to think about them. Just be sure you know how car leasing works and if you are a good candidate for leasing. See LeaseGuide.com for a free consumer guide to car leasing.

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Subaru

Deals are being offered on practically every Subaru model and style in a variety of lease terms (length of lease), including 36 months, 39 months, and 42 months. Of course, payments are a bit higher for the shorter terms. Most of the lease deals require a $999 down payment (cap cost reduction). If you understand how leasing works, you know the down payment is due at time of contract signing, along with the first month’s payment, taxes, and official fees.

If you don’t understand how car leasing works, we suggest that you visit LeaseGuide.com before you make a decision to lease.

Some of the cheapest ($200 or less) and best Subaru lease deals are as follows:

2011 Subaru Imprezza 2.5i AWD manual sedan – $179/month, 42 months, $999 down

2011 Subaru Imprezza 2.5i AWD manual sedan – $181/month, 39 months, $999 down

2011 Subaru Imprezza 2.5i AWD manual sedan – $184/month, 36 months, $999 down

2011 Subaru Imprezza 2.5i AWD automatic sedan – $191/month, 42 months, $999 down

2011 Subaru Imprezza 2.5i Premium AWD manual sedan – $196/month, 42 months, $999 down

2011 Subaru Legacy 2.5i AWD manual sedan – $199/month, 36 months, $1299 down

2011 Subaru Legacy 2.5i AWD manual sedan – $200/month, 39 months, $1299 down

There are many more special limited-time Subaru leases for February than the few listed here, on practically every model including the popular Forester.  If you are in the market for a Subaru and need a low monthly payment, this is a good time to consider one of these lease deals.

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Car manufacturer’s help dealers sell last year’s leftover cars and trucks by giving them special factory-to-dealer rebates (which are offered to customers as price discounts) and offering customers direct rebates and low interest loans.

Automobile buyers can save a tremendous amount of money when buying these heavily incentivized leftover vehicles. In many cases, the vehicles are almost exactly the same as the current-year’s models. Furthermore, every vehicle has a full manufacturer’s warranty and lemon-law protection.

Following are some of the best and largest incentives currently being offered on 2010 model-year vehicles:

Acura – 0% APR on most leftover 2010 models

BMW – 2010 BMW 6-Series and M6 – $15,000-$17,500 factory-to-dealer cash (WOW !!!)

Buick – 2010 Buick Lucerne – $4500 rebate and 0% APR loan

Chevrolet – 2010 Chevrolet trucks (most models) – $5000 rebates. 0% APR loan rates on all 2010 models except Camero and Equinox.

Chrysler (Chrysler, Dodge, Jeep, Ram) – 0% APR loan rates on nearly all remaining 2010 models. Factory-to-dealer cash on 2010 Chrysler 300 – $6500, 2010 Dodge Dakota – $5000, 2010 Jeep Grand Cherokee – $5000, 2010 Ram 1500 – up to $6000.

Cadillac – Factory-to-dealer cash on 2010 Cadillac DTS and CTS – $10,000, 2010 Escalade – $8000 (WOW !!!)

Ford – Rebates of $1000-$5000 on most 2010 trucks and SUVs. 0% APR loans on most 2010 models.

GMC – 2010 trucks – $5000 rebates

Mazda – Factory-to-dealer cash on 2010 Mazda CX-9, Mazda6, MX-5 Miata, RX-8 – $3000-$3500

Kia – 2010 Kia Optima, Sedona – $2000-$3000 rebate or 0% APR loan

Mitsubishi – 2010 Mitsubishi Endevor – $4500 rebate or 0% APR loan

Nissan – 2010 Nissan Armada, Titan – $3500-$4500 rebate, 0% APR loan rate on all leftover Nissan 2010 models 

Saab – 2010 9-3 – $5000-$7000 rebate, or 0% APR loan

Toyota -  $1000-$3000 rebates or 0% APR loan rates on most remaining 2010 models. Factory-to-dealer cash – up to $4000 on 2010 Tundra, up to $3000 on 2010 Highlander.

Volvo – Factory-to-dealer cash – 2010 S80, XC70 – $6000 , 2010 C70 – $4000

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

However, there is one kind of incentive that is not advertised, at least not directly. We often call it a “hidden rebate” or “secret rebate.” In the auto industry it’s called marketing support or factory-to-dealer cash.

The rebate is “hidden” because it flows directly from the car company to dealers. It is provided to dealers as a way of helping them sell or lease cars. The rebate is not a constant and is not offered on all makes and models. It’s offered on a month by month basis, the same as direct customer rebates. It might be offered one month, and not another. The amount of the “hidden” rebate can vary widely, depending on how badly the manufacturer wants to help sell a particular model vehicle.

Dealers can use marketing support money almost any way they want if it helps sell cars. They could use it to pay for advertising, tent sales, or special promotions. However, most if not all of the money is given to customers as a price discount. When a dealer kicks in his own discount, added to the marketing support discount, customers can walk away with a terrific deal. This is how dealers can sell cars at “below invoice price.”

At the time of this writing, the following manufacturers are providing “hidden rebates” to dealers. These rebates may not apply to all models or styles and often require that the customer finance their purchase or lease through the manufacturer’s finance company (example: Ford Motor Credit).

• 2010 BMW M6, 6-Series, X3 – $4000-$$12,500
• 2010 Chrysler PT Cruiser, Sebring – $1000
• 2010 Jeep Wrangler – $750
• 2011 Cadillac CTS, DTS, STS – $3500
• 2011 Cadillac Escalade – $2000
• 2011 Chevrolet Aveo, Corvette, HHR, Impala – up to $4000
• 2010 Chevrolet Aveo, Cobalt, HHR, Impala – up to $5000
• 2010 Pontiac Vibe – $3000
• 2010 Acura RL, TL, ZDX – $2000-$4000
• 2010 Honda Odyssey, Ridgeline, Civic Hybrid – $1500
• 2010 Honda Accord, Crosstour, Civic, Insight – up to $1200
• 2011 Mazda Tribute – $1500
• 2010 Mazda MX-5 Miata, RX-8, Tribute – $3000-$3500
• 2010 Mazda CX-7, CX-9, Mazda5, Mazda6 – $1500-$2000
• 2010 Mercedes CL, CLS, R-Class, S-Class, SLK – up to $10,000
• 2010 Mercedes C-Class, E-Class, GL, GLK, M-Class – $1500-$5000
• 2010 Saab 9-5 – $2000
• 2010 Subaru Impreza – $1000
• 2011 Toyota Camry – $1500
• 2010 Toyota Tundra – $4000
• 2010 Toyota Avalon, Camry – $2000
• 2010 Toyota Corolla, Highlander, RAV4 – $1500
• 2010 Volvo  C70, S80, V70, XC70, XC90 – $1000-$5500
• 2010 Volvo C30, S40, V50, XC60 – $1000-$1500

Edmunds.com.The quotes will automatically include any cash-back rebates or discounts that are currently available.

You can get free price quotes on any of the above cars from

Honda

This month, one of the best lease deals is on the 2010 Honda Civic LX 4-door sedan at only $159 a month, with $1840 required as a down payment. When you add in the required first month’s payment, the total amount due up front is $1999. 

If the $1999 is a little too much for you, you can opt for a higher monthly payment – $210 a month – and owe $0 up front. It’s the same deal as above except for the elimination of the down payment and first payment requirement. 

Either way, this is an outstanding lease deal from Honda. In order to create this low monthly payment on the Civic, they have significantly reduced the price that the lease is based on. Furthermore they have set a low interest rate (lease money factor), and boosted the residual value.

What’s the catch with the monthly Honda lease deals?

The catch is that the special deals only apply, typically, to a single style within each model line, usually the middle-of-the-line model, the LX. And if it’s the end of the model year, the deal is typically on the older model. However, since models do not change significantly from year to year, this is not a great sacrifice.

Honda vehicles nearly always make great lease vehicles, even without special deals, because they have some of the highest lease-end residual values (resale values) of any car brand. Compared to other brands, such as Chevrolet or Ford, at the same price points, Honda will always win the lease cost battle.

If you don’t understand how car leasing works, we strongly recommend that you visit LeaseGuide.com before making a decision to lease.

Typically, you have to choose only one kind of deal. For example, you must take the special lease deal — or take the low-interest purchase loan — or take the purchase rebate. In other articles we have discussed low-interest (or 0% interest) loans versus rebates (see 0% APR Loans – Good Deal or Not?). In this article, we’ll discuss leasing versus buying a car.

We’ll keep this discussion simple and easy to understand but if you need more details we suggest you visit LeaseGuide.com.

Car leasing is not renting as many people mistakenly believe. It’s not at all like apartment leasing or renting. It’s a form of financing, just as a loan is a form of financing. In fact, a car lease actually is a loan. However, monthly payments are lower than with a loan because you are only paying for part of the cost of the car — the part that you’ll be “using up” in the three years of your lease. Then you repay the remainder of the lease “loan” by returning the car at lease-end (or buying it).

Lease payments are typically only 40%-60% of loan payments for the same car, same term. For people wanting to minimize their monthly expenses, leasing provides a good way to do it. However, at the end of three years (or whatever your lease term is), you must return the car and start all over again. Very rarely will a lease car have trade-in equity. So, for people who normally like a new car every three or four years, drive an average number of miles each year, take good care of their cars, have a stable life style, and don’t get hung up over the “ownership” issue, then leasing is a good way to go.

On the other hand, if you decide to buy rather than lease your car, you make higher monthly payments to pay for the entire cost of the car. Once the loan has been paid off, you have some trade-in equity (what value is left after depreciation has taken its toll), or you can drive the car payment-free for years to come. Because you can spread your cost over a longer period of time, you can save money in the long term. So, for people who don’t mind higher monthly payments, normally drive their cars for years, drive a lot of miles, want to modify their cars, and prefer to have a time when they are payment-free, then buying will be better than leasing.

So the answer to the leasing vs buying a car question really depends on the individual. The right answer for one person will be wrong for another. Many people have been leasing their cars successfully for years. Other people, who know little about leasing make the mistake of choosing leasing based on nothing more than the lower payments it offers. To make a correct lease vs buy decision requires an understanding of how leasing works and how to determine if it’s right for you. Again, we suggest you read “Lease vs Buy?” at LeaseGuide.com for more details.

The answer: almost everywhere. Nearly every car manufacturer is currently offering some great special lease deals on at least a few of their models and styles.  With the exception of some General Motors leases, nearly all the lease deals now being offered come from non-American car makers.

These deals come and go. Some months are better than others. If you are looking to lease a Honda, for example, you missed the big $0-$0-$0-$0 promotion in March and April. However, the current Honda deals are almost as good.

Nearly all manufacturer-backed car lease deals are actually good deals and well worth considering if you like the models and styles being promoted. Most of the deals require some money up front (due at lease inception) but if you don’t have the cash, you would have to pay about $20-$30 more per month for every $1000 you can’t pay. It doesn’t change the fact that the lease is a good deal — it simply means you pay more per month to get the deal..

Most of the cheapest promotional lease deals are in the $200 range, more or less. These are generally 36 month leases, 12K miles per year, and usually require some down payment cash (as discussed above) and your first month’s payment.

Here are examples of some of the best lease deals going right now: 

• Honda Civic – $159 a month, $1399 up front
• Hyundai Sonata – $199 a month, $2399 up front
• Hyundai Elantra – $159 a month, $1399 up front
• Kia Sorento – $209 a month, $2669 up front
• Kia Soul – $129 a month, $2279 up front
• Mazda3 – $239 a month, $0 up front
• Nissan Cube – $199 a month, $2449 up front
• Nissan Altima – $199 a month, $2999 up front
• Scion xD – $187 a month, $837 up front
• 2011 Toyota Camry – $189 a month, $1999 up front
• Toyota Matrix – $149 a month, $2949 up front.

You can get free quotes on any of the above vehicles from Edmunds.com.The quotes will automatically include any cash-back rebates or discounts that are currently available.