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.

Car manufacturers and dealers don’t begin new incentives programs before old ones expire.

Most current incentive programs ended on August 31 (General Motors’ and Honda’s programs end on September 7, 2010), but it usually takes a few days for new programs to be announced.

One thing is for sure. Dealers still have leftover 2010 models now that many 2011 models are out. These cars must go and deals can be had. Dealers can lower their prices — and they do — but the real deals come from the manufacturers in the form of special incentives — direct customer rebates and bonuses, low loan interest rates, 0% APR interest rates, special lease deals, and “hidden” factory-to-dealer cash that dealers use to lower prices even further.

Don’t expect great deals on 2011 models until the 2010s are gone.

Here are the deals we expect to see in September:

BMW – Low interest rates and dealer cash on 2010 models. Large dealer cash on 5-Series and 6-Series

Chrysler/Dodge/Jeep - Heavy rebates or 0% APR loans on all 2010 models. Special rebates or low interest loans on 2011 trucks. Modest dealer cash on many 2010 models

Ford -  Heavy rebates or 0% APR loans on nearly all 2010 models. Special deals on 2011 trucks. Large dealer cash on leftover 2009 models.

General Motors – Moderate rebates or medium-low-interest loans on most 2011 models. Heavy discounts or 0% APR loans on remaining 2010 models

Honda – 0% APR or low-interest loans on all 2010 models. Modest dealer cash on Odyssey, Accord, Civic, and Insight

Hyundai-Kia – Modest rebates or low-interest loans on 2011 models

Mazda – 0% APR loans on most 2010 models

Mercedes – Low-interest loans on some 2010 models

Mitsubishi – Good rebates or 0% APR loans on most 2010 models

Nissan – Good rebates or 0% APR loans on most 2010 models

Suzuki – 0% APR loans on 2010 models

Toyota – Modest rebates or 0% APR loan rates on most 2010 models. Modest dealer cash on many 2010 models

Audi / Volkswagen – 0% APR on most 2010 models. Heavy dealer cash on 2010 Audi models.

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.

Some manufacturers are also offering cash-back rebates but, as you may already know, you generally must choose between the rebates and the special low-interest (or no interest) loans. You can’t take both.

Usually, rebates are a better deal, especially if you need down payment money (rebates can be used as down payment cash). However, in many cases, you don’t have a choice when only a rebate, or only a low-interest loan is being offered. See our article, 0% APR Car Deals – Good Deal or Not? for more details.

Here are some of the current (July 2010) car makes and models with 0% APR loan deals. Note that the 0% APR rate usually only applies for shorter-term loans — 24, 36, or 48 month loans — and may not apply to all styles within a model line. Many apply to both 2011/2010 and 2009 models, but some only apply to leftover 2009 models. Conditions can vary by car company. 

Following are some of the current 0% ARP loan deals. Chrysler (Chrysler/Dodge/Jeep) is the currently the winner in offering the most 0% deals on nearly its entire 2010 line of vehicles.

• Chrysler 300
• Chrysler Town & Country minivan
• Chrysler PT Cruiser
• Chrysler Sebring
• Chevrolet (most 2009 models)
• Dodge Charger
• Dodge Grand Caravan minivan
• Dodge Journey
• Dodge Avenger
• Dodge Dakota
• Dodge Nitro
• Jeep Grand Cherokee
• Jeep Compass
• Jeep Commander
• Jeep Patriot
• Ford Mustang
• Ford Flex
• Ford Explorer
• Ford Ranger
• Ford Edge
• Ford Fusion
• Ford Taurus
• Ford F-150, F-250, F-350, and F-450 trucks
• Ford Escape
• Ford Taurus X
• Ford Explorer Sport Trac
• Ford Focus
• Ford Expedition
• Ford Econoline
• Lexus ES350/IS250/IS350 (2009)
• Lincoln MKX
• Lincoln MKS
• Lincoln MKZ
• Mercury Mountaineer
• Mercury Milan
• Mercury Grand Marquis
• General Motors brands (Chevrolet, Cadillac, Hummer, GMC, Saab) – 2010 models
• Honda Civic
• Kia Forte
• Kia Soul
• Mazda CX-8/CX-7/CX-9
• Mazda Mazda3
• Mazda Mazda6
• Mitsubishi – All 2009/2010 models
• Infiniti EX35/FX35/FX50/M35/M45/QX56
• Nissan – Most 2010 models
• Suzuki XL7
• Suzuki Equator
• Suzuki Grand Vitara
• Suzuki SX-4
• Suzuki Kizashi
• Toyota – All 2010 models and 2011 Camry, including Hybrid
• Volkswagen – most 2010 models except Jetta TDI sedan
• Audi – 2009 A3, A8, Q7, TT, TTS, A4, A6
• Volvo – S80, XC70, C30, C70, S40, V50, V70

Of course, the best deals result from having both a 0% loan and a good price discount. Many car buyers are so happy to get a great loan deal that they overlook the fact that they should also be getting a price discount (not rebate) from their dealers. Shop for or negotiate your best price, even when you are getting a zero-percent loan. Don’t let dealers try to tell you that you can’t have both.

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.

Which cars are the most reliable? Which are the best values? The safest? The best quality? Or the most comfortable to drive?

Although all car brands and models have many characteristics in common, they are all different not only in price but also in reliability, performance, fuel economy, construction quality, safety, comfort, interior space, luxury features, options, and styling.

The best cars are those that have the best balance of all these characteristics.

Fortunately, a number of well respected companies and car magazines evaluate new cars every year and tell us which they have found to be the best, based on their particular set of evaluation and testing criteria.  Edmunds.com is one of those companies. They have broken down their “best-car” listings into categories to help you home in on the type of vehicle you are expecting to buy.

Following are links to Edmunds’ current listings:

•  Best Economy Cars
  
•  Best Minivans
  
•  Best Luxury Sedans
  
•  Best Convertibles
  
•  Best Hybrid Vehicles
  
•  Best Midsize Family Sedans
•  Best Wagons
  
•  Top 10 Most Fuel-Efficient Sedans
  
•  Top 10 Deals of the Month – Trucks, Minivans and SUVs

###

Dealers need to get rid of the older models to make room for new models. Money is tied up in the old models and that money needs to be retrieved to buy new models.

Car manufacturers help dealers sell leftover models by providing factory-to-customer rebates, low interest loans, special lease deals, and hidden factory-to-dealer cash that dealers can use to reduce prices.

We’ll see plenty of that kind of help in August and September of this year.

What this means is that August and September are two of the best months of the year to buy a new car. Some incredible deals can be had.

Let’s look at some examples of the kinds of deals we can expect:

BMW will be offering extremely low interest loans (although not quite 0%) on 2010 models such as the 6-Series, M6, X3, and some 5-Series. Factory-to-dealer cash as high as $10,000 (6-Series and $7000 (5-Series and M5) will also be available. Some excellent lease deals will be available on the 3-Series.

Chrysler will have rebates in the $2000-$1000 range on nearly all 2010 models — as well as 0% APR loan deals on nearly all 2010 models. Dealer cash of approximately $1000 will be offered on some models.

Ford will offer customer rebates in the $500-$2500, depending on model for 2010s — or 0% APR loan deals on nearly every 2010 vehicle. Dealer cash in the $3000-$6500 range will be available for many 2010 Ford models, especially Lincoln and Mercury.

General Motors, for 2010 models, will promote rebates as high as $4000 on some models (even higher for trucks) and low interest loans, including some 0% APR on selected models.

Honda will have low-interest loans on many 2010 vehicles.

Hyundai-Kia will offer rebates in the $1000-$2500 range, depending on specific 2010 model.

Land Rover will offer low interest loans.

Mercedes will offer low interest loans.

Mitsubishi will have rebates in the $1000-$4000 range for leftovere 2010 models.

Nissan will have rebates in the $1000-$4000 range (higher for Titan and Armada) and 0% APR loans for most 2010 models. Dealer cash in the range of $1000-$4500 will be available for all 2010 models.

Toyota will have modest rebates and 0% APR loans on most 2010 models (Toyota incentives are subject to change quickly). Factory-to-dealer cash of $1000-4500 will be available.

Volkswagen and Audi will offer low-interest loans, including some 0% APR. Factory-to-dealer cash of $2000-$6000 will be offered on 2010 Audi models.

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.

The answer: Yes!

Most people who get a GPS system for their car for the first time wonder how they did without one before. It becomes something that you simply depend on — and can’t do without. Many people find it’s not so much the direction-finding function of a GPS that is most useful, but the moving-map function. Getting in a traffic jam and simply looking at the GPS unit’s map to find an alternate route is an amazing convenience.

However ………. buying a built-in GPS in a new car can be very expensive when you compare to the cost of buying a portable unit. The cost of a portable GPS is often one tenth of the cost of a new-car GPS option. And there are other benefits of a portable GPS:

- You can carry it with you from car to car, to rental cars, on bicyles, walking in a city, or simply using it in a hotel to find nearby restaurants

- Even though built-in GPS units have larger screens, you can mount a portable unit closer to you and screen size becomes irrelevant

- Portable GPS units have touch screens, making them easier to use than built-in systems that use separate buttons for functions

- Many portable GPS units display traffic, show delays, and offer re-routing functions, while most built-in GPS units do not

- Maps are cheaper to update in portable units

Portable units offer other useful functions such as Bluetooth (for cell phone use), voice commands, photo display, music player, currency calculators, and much more. You can buy the specific model that has only the functions you want, and want to pay for.

We have researched portable GPS units from a number of different manufacturers including Garmin, Magellan, TomTom, and Navigon. We found the best to be the popular and highly rated Garmin Nuvi 265W (if you want traffic, get the Garmin Nuvi 265WT).

###

Like always, car manufacturers never, ever announce new incentives until old incentives expire. In the case of the current June 2010 programs, most expire on July 6, 2010, right after the July 4th holiday. They don’t even announce new incentives to their dealers any earlier. That way, they can keep the old programs alive up to the last day.

How can we know if the July incentives, rebates, 0% APR interest loans, and special lease deals are going to be as good, or better than the old incentives? We can’t. However, we can make some good educated guesses based on our experience and knowledge of what drives incentives.

We know, for example, that car sales nearly always slow down in summer. People are taking vacation, the kids are out of school, the weather is hot, and gas prices go up due to heavier demand. Although sales are slow, which would ordinarily imply that car makers would throw incentive programs our way, it is not necessarily the case for the Summer season. Sales are going to be slow regardless of the availability of incentives and rebates.

Therefore, we think that, overall, incentives for July 2010 are not going to be any better than those for June. And in many cases, the incentives will not be as good. If you are thinking about buying or leasing a car now, and you can get a good deal now, don’t hold out hoping for July will be better. If you wait, it’ll be too late.

In fact, we think that incentives won’t start to perk up until about September, the traditional Fall buying season when many manufacturers bring out their new models. Fall and Winter are always good car-buying times.

There may be some exceptions, however. Toyota is still recovering from bad press over some of their problems of the last few months. They want to let people know they have solved the problems and that you can now get good deals on Toyota vehicles. Incentives will continue to be good.

Also watch for good deals on discontinued or sold-off brands such as Pontiac, Hummer, Saab, Volvo, Mercury. And there are still many 2009 leftover (and some 2010 leftover) models still in dealers’ inventory that will have good incentives.

We’ll all have to wait until after July 6th to see if we’re right about these predictions. Most new programs will not be announced until about July 8th or later.

You may or may not know that Chrylser Corporation has had some tough times for the last couple of years. Incentives have been rare and small. They even got completely out of the leasing business. And then their finance company, Chrysler Credit Corp. (later Chrysler Finance) had even more serious problems such that Chrysler loans and leases are now provided by GMAC.

However, the company seems to be making a comeback. The June 2010 incentives are some of the best in the industry as they attempt to recover from their problems. They particularly want to keep returning lease customers.

Although we’re looking here at Jeep deals, keep in mind that similar deals are available on Chrysler and Dodge vehicles as well.

Here are some of the current Jeep deals:

2010 Jeep Commander – $4000 rebate, $500 regional (NE U.S.) bonus, $1500 allowance for returning lease customers  — or 0% APR for 36/48/60 months, 1.9% for 72 months

2010 Jeep Compass – $1500 rebate, $1500 allowance for returning lease customers — or 0% APR for 36/48/60 months, 1.9% for 72 months

2010 Jeep Grand Cherokee – $4000 rebate, $1000 regional (NE U.S.) bonus, $2000 lease bonus cash, $1500 allowance for returning lease customers — or 0% APR for 36/48/60 months, 1.9% for 72 months

2010 Jeep Liberty – $2000 rebate, $1000 regional (NE U.S.) bonus, $2000 lease bonus cash, $1500 allowance for returning lease customers — or 0% APR for 36/48/60 months, 1.9% for 72 months

2010 Jeep Patriot – $1500 rebate,  $1500 allowance for returning lease customers — or 0% APR for 36/48/60 months, 1.9% for 72 months

2010 Jeep Wrangler – $500 lease bonus cash, $1500 allowance for returning lease customers.

Although current Chrysler Corp. leases are nothing to write home about, it is significant that they are back in the leasing business albeit in a small way. The current lease deals are based on a reduced capitalized cost due to lease bonuses (see above). However it appears that there is little if any money factor reduction nor boosted residual values. (See LeaseGuide.com if this doesn’t make sense to you). Therefore, you would pay more for the lease of a Jeep than you would for, say, a Honda or Toyota of the same price.

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

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.

All the Cadillac zero-percent interest loans are for 36 months, 48 months, and 60 months.  Zero-percent loans mean you pay nothing in finance charges for the entire term of the loan, which can save you thousands of dollars in the long term, and lower your monthly payment in the short term.

In short, 0% loans are good deals, and are well worth your consideration.

If you want a longer loan (72 months), you can’t get 0% but you still get a very low interest rate, such as 1.9% or 2.9% depending on model.

Currently, the special loan deals are on selected styles of the following 2010 models:

Cadillac CTS

Cadillac DTS

Cadillac Escalade

Cadillac STS

Additionally, Cadillac is offering dealers a special form of factory-to-dealer rebate, sometimes called dealer cash. This is “secret” money given the dealer to help promote, advertise, and discount his vehicles to help improve sales. Normally, most, if not all, of this money ends up in customers’ pockets as a price discount. The amount of the dealer cash on the affected models are in the range of $2000-$3000 per vehicle.

As we read it, there are no restrictions on the dealer cash incentive being used in combination with the 0% APR loans (and low-interest loans) discussed above. In other words, you should be able to get both.

In addition to the dealer cash that comes from the manufacturer (General Motors), you should also be able to negotiate some additional price concessions from the dealer himself.  All combined, low interest rates, dealer cash, and dealer discounts should make June a good month to buy a Cadillac.

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

BMW

The low-interest loans are structured a little odd but are nevertheless interesting and worth considering. For example, on the BMW 335i xDrive, you can get 0.9% APR for 24 months or 2.9% APR for 72 months – or 1.9% APR for 72 months if you have owned/leased a BMW vehicle in the last 12 months. Similar low-interest rates are available on many other models and styles.

Many 2010 BMW models get special lease deals. These include the 1-Series, 3-Series, 5-Series, 6-Series, 7-Series, X3, X5, X6, and Z4. Note that there are no special leases being offered on new 2011 models. However, you can negotiate your own lease deal — if you understand how leasing works. If not, we recommend you visit LeaseGuide.com.

The BMW special car leases are genuinely good deals. The company has reduced the price (capitalized cost) on which the lease is based, has reduced the interest rate (money factor), and boosted the lease-end residual value. When combined, these factors create a low monthly lease payment for that vehicle. You would not be able to negotiate the same terms on your own.

BMW is also offering “Owner Loyalty Bonus Cash” on selected models, for customers who have previously leased a BMW and now want to lease again. The amount is typically $1500.

Finally, BMW the manufacturer, is providing dealers a form of factory-to-dealer rebate that they call “Build-Out Cash” on many models and styles. This money can be used by dealers to promote sales or provide price discounts to customers — which is typically what happens. When you accept one of those nice lease deals, for example, one of the reasons for the low monthly payment is that the lease price has been reduced by the “build-out cash.” Or if you are buying and it looks like the dealer is giving you the shirt off his back, he’s only passing along his “build-out cash” to you. 

Build-out cash can be very significant, especially on higher priced BMW models. For example, the 2010 BMW Z4 gets $3500. The 2010 BMW 5-Series gets $6000.  And the 2010 BMW 6-Series gets a whopping $10,000! That’s a nice price discount on a nice car.

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

It also appears that GM wants to take advantage of Toyota’s recent problems, hoping they can convince some Toyota and Lexus owners/leasers to switch over. For most models, they are offering a $1000 bonus rebate to switchers.

Let’s take a look at some of the best Chevrolet deals for June. All the deals are for 2010 model cars except where noted otherwise, and the deals expire on June 30, 2010.

Chevrolet Impala – $3000 customer rebate + $1000 bonus for current Toyota/Lexus owners/leasers — and 3.9% APR loan rate that can be combined with the rebates — or 0% APR loan rate that cannot be combined with the rebates — or $199 a month special lease, 39 months, 10K miles per year, $2119 due at signing — or $299 a month lease, 39 months, 12K miles per year, $2869 due at signing

Chevrolet Cobalt coupe – $3000 customer rebate + $1000 for customers who finance through GMAC at standard rates + $1000 for current Toyota/Lexus owners/leasers — and 3.9% APR loan rate that can be combined with $3000 rebate — or 0% APR loan rate than cannot be combined with $3000 rebate — or $179 a month special lease, $2469 due at signing, 39 months, 12K miles per year . Other styles of the Cobalt get $3000 factory-to-dealer cash (which typically is given back to customers as a price discount) + $1000 for financing through GMAC at standard loan rates.

Chevrolet Silverado 1500 – $4500-$5000 customer rebate + $1000 to current Toyota/Lexus owners/leasers — or 0% APR loan rate for 36/48/60/72 months — or $299 a month lease (Reg Cab 2WD), $2199 due at signing, 39 months

Chevrolet Traverse - $2000 customer rebate + $1000 to current Toyota/Lexus owners/leasers — or 0% APR loan rate for 36/48/60 months — or $299 a month lease (LS model), $3449 due at signing, 39 months

Chevrolet Aveo – $2500 customer rebate + $1000 to current Toyota/Lexus owners/leasers – or 3.9% APR loan rate for 36/48/60 months. Some Aveo styles get the above $2500 rebate but other styles get a $2500 factory-to-dealer rebate, which typically is given back to the customer as a price discount.

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

The deals are in the form of low-interest loans (although no 0% loans this month), a few special low-payment lease deals, and some healthy factory-to-dealer cash incentives (that usually end up being given back to customers as price discounts).

Honda’s incentives are all for 2010 model cars, except where noted, and the deals expire on July 6, 2010. All lease deals are for 36 months, 36K miles.

Before we list the current Honda deals we remind you that the lease deals listed below are all genuinely good deals. Typically, they only offer these special deals on a selected few models and styles. But if you like any of those models and styles,you can get a great deal. We also want to remind you that if you don’t understand how leasing works and how to determine if leasing is right for you, you should visit LeaseGuide.com to learn. 

Here are the Honda deals for June 2010:

Honda Accord – 0.9% APR loan for 24/36 months, 1.9% for 60 months — or $199 a month lease (LX sedan), $1999 due at signing — or $219 a month (LX coupe), $2599 due at signing — and $1200 factory-to-dealer cash

Honda Civic – 0.9% APR loan for 24/36 months, 1.9% for 60 months — or $169 a month lease (LX sedan), $1799 due at signing — or $159 a month (DX-VP model), $1399 due at signing — and $1000 factory-to-dealer cash

Honda CR-V – 1.9% APR loan for 24/36 months, 2.9% for 60 months — or $249 a month lease (LX model), $1999 due at signing

Honda Odyssey – 1.9% APR loan for 24/36 months, 2.9% for 60 months — or $249 a month lease (LX model), $1999 due at signing — and $1500 factory-to-dealer cash

Honda Fit – $149 a month lease, $2399 due at signing

2011 Honda Pilot – 1.9% APR loan for 24/36 months, 2.9% for 60 months — or $309 a month lease, $2999 due at signing

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 Honda vehicles from

We don’t have a crystal ball and car manufacturers don’t pre-announce upcoming car programs and incentives but we can make some pretty good guesses based on our experience in the business.

As you might know, the current round of May 2010 incentives ends on June 1. That means any new programs will be announced sometime after that date. Nobody knows just what new programs will be announced. Car manufacturers don’t even tell their dealers in advance.

Our guess is that June 2010 incentives will not be as good as some of the more recent programs. Most car makers blew it out in March and April, which created a couple of the best car sales months in years. However, they backed off in May and we expect to see some additional reductions in June. In fact, we may not see any more outstanding incentives until the fall buying season.

Does that mean we won’t see any good deals at all in June and during the summer? Of course not. There will always be some great deals being offered. It just won’t be on as many models and styles. And some manufacturers will be more agreessive than others.

Look for Toyota to continue offering attractive incentives just as it has for the last few months as it attempts to pull out of the sales slump created by its recent technical problems.

Also look for Toyota’s competitors to be actively attempting to get some of those customers  —  Honda, Nissan, and Mazda in particular.

Look for special lease deals to be plentiful in June. Car leasing is coming back strong after a two-year slump, particularly with non-American car brands.

Although rebates won’t be as large in June for this year’s models, look for especially heavy rebates on leftover 2009 models.

Finally, 0% APR loans will be more popular than rebates with car makers this summer. The reason is that with a rebate, they lose money immediately but with a 0% loan they lose money more slowly.

In summary, June 2010 car deals won’t be quite as good, overall, as in the last three months, but that doesn’t mean you can’t still get a good deal. You’ll have to watch for deals a little more closely and maybe hone up on your negotiating skills.

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.

Why?

Because most car manufacturers are trying to get potential buyers’ attention by offer high factory-to-customer rebates, as well as other incentives. Rebates of $5000 or more are available on some brand and models. Rebates are especially heavy on leftover 2009 models.

Although we continue to highlight specific car brands and models that have good incentives, we thought it might be useful to look at those with the highest and best rebates right now.

Before we show you our list, let us remind you that rebates can sometimes vary depending on the area of the U.S. you live in and the rebates are limited-time promotional deals that will expire at the end of the month.

Here are the vehicles that currently have the highest customer rebates ($4000 or higher). All are for 2010 models unless specified otherwise.

• 2011 BMW 3-Series and X5 - up to $4500 rebate on selected styles
• Jeep Commander and Grand Cherokee – $4000 rebate
• Ford F-450 Super Duty, F-350 super Duty, F-250 Super Duty – $4000 – $5000 rebate
• 2009 Ford F-250, F-350, F-450 Super Duty – $5000 rebate
• Buick Lucerne – $4000 rebate
• Chevrolet Avalanche, Silverado 1500 Hybrid, Silverado 2500/3500 HD – $5000 rebate
• Chevrolet HHR, Silverado 1500 – up to $5000 rebate
• GMC Sierra 1500 Hybrid, Sierra 2500/3500 HD – $5000 rebate
• GMC Sierra 1500 – $4500 – $5000 rebate
• 2009 Buick Lucerne – $4500 rebate
• 2009 Buick Enclave, LaCrosse – up to $4000 rebate
• 2009 Chevrolet Corvette – up to $5000 rebate
• 2009 Chevrolet Avalanche – $4500 rebate
• 2009 Chevrolet HHR, Silverado 2500/3500 HD (and related GMC models) – up to $4500 rebate
• 2009 Hummer H2, H2 SUT, H3 – $5000 rebate
• 2009 Hummer H3T -$4000 rebate
• 2009 Saab – up to $9000 rebate on selected models
• 2009 Kia Sorento, Spectra – up to $5000
• Nissan Titan – $4000 – $5000 rebate
• Nissan Armada – $4000 rebate
• Nissan Altima Hybrid – up to $4000 rebate
• 2009 Nissan Altima Hybrid – up to $4750 rebate

If you are looking for the best rebates currently available on 2009 and 2010 (and some 2011), consider the above list. With these kind of high rebates, it’s not difficult to buy a brand new vehicle for less than a used vehicle of the same model that’s a year or two old.

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.

Let’s just start by saying that most advertised car lease deals are backed by the car manufacturer and are generally good deals. What’s the catch? Well, the special lease deals you see advertised are usually for only one (or a few) model of that car. Many times, but not always, it’s one of the low-end models with the lowest prices. If you like that model, great. If not, you might not be able to get such a good deal on another model since the other models don’t have the backing of the car manufacturer.

So how you know if a lease deal is good, or not?

First, it helps to understand how leasing works. You can use LeaseGuide.com for that purpose.

There are essentially three factors that determine whether a lease is a good deal or not.

One is the sale price of the car. Yes, price is just as important when leasing as when buying. The lower the price, the lower the monthly payment. So if the dealer is offering a low price (or you can negotiate a low price), compared to the sticker price on the car, then you’re headed toward a good lease deal.

Next, money factor is important. Money factor is another way of expressing finance interest rate. Yes, you pay interest on a lease, just like with a loan. Money factor is expressed as a very small number such as .0022 or .00175. To convert to conventional interest APR, simply mulitply the money factor number by 2400. For example, a money factor of .0022 x 2400 = 5.28%. You can compare that rate to the national average new-car interest rate at Bankrate.com. At the time of this writing, the national average rate is 6.43%. Therefore, your lease rate of 5.28% would be a good deal — not great, but good.

Next, residual value is important. Residual value is the estimated lease-end resale value of the car you intend to lease. The higher the value, the lower your lease payment. It is usually expressed as a percentage of MSRP (sticker price) — not negotiated sale price — such as 55%. In general, any residual value over 50% for a 36 month lease is considered good. Some cars, especially many American car models, have low residual values and don’t make good lease deals. Brands such as Honda and Toyota, are examples of those with higher residual values and generally make good lease cars, especially when high promotional residuals are being offered to create attractive low payments.

Factors that have some affect but are not really important in a lease deal are down payment, fees, and mileage limits. Making a down payment, for example, simply lowers your monthly payment, but doesn’t doesn’t change the “goodness” of the fundamenal deal. And up-front fees can’t change a good deal to a bad deal. Mileage limits should be considered before leasing (do you drive more miles than allowed?) but the difference in one mileage limit (say, 12,000 miles per year versus 10,000 miles per year) may change the payment amount, but won’t change the value of the deal.

To summarize, a the value of any car lease deal is determined by the 1) negotiated sale price of the car, 2) interest rate (lease money factor), and 3) lease-end residual value. Again, if you need to better understand how car leasing works, we recommend LeaseGuide.com.

Mazda

Some of the deals even have $0 down and first month’s payment made for you. And no security deposit. This means you pay nothing up front (except for some possible official tag and registration fees that vary according to where you live).

Here are examples of some of the good Mazda leases available now:

2010 Mazda3 i Touring sedan – $270 a month, 42 months, 42K miles allowance, 0$ due at signing, $0 first month’s payment 

2010 Mazda3 i Sport sedan – $239 a month, 42 months, 42K miles allowance, 0$ due at signing, $0 first month’s payment

2010 Mazda6 i Touring sedan – $288 a month, 42 months, 42K miles allowance, 0$ due at signing, $0 first month’s payment

2010 Mazda6 i Sport sedan – $269 a month, 42 months, 42K miles allowance, 0$ due at signing, $0 first month’s payment

2010 Mazda5 Touring minivan- $317 a month, 36 months, 36K miles allowance, $2912 due at signing

2010 Mazda5 Sport minivan- $299 a month, 36 months, 36K miles allowance, $2894 due at signing

2010 RX-8 Sports coupe – $339 a month, 36 months, 36K miles allowance, $3434 due at signing

2010 Tribute i Sport SUV – $329 a month, 36 months, 36K miles allowance, $2924 due at signing

These special promotional Mazda lease deals have discounted prices, low money factors, and high lease-end residuals, which all together makes for low monthly payments — much lower than normal. If you have been thinking about a Mazda, now is a good time to lease.

If you don’t understand how car leasing works, you should. We recommend LeaseGuide.com as a good resource to learn about leasing and to determine if you are a good leasing candidate. Everybody isn’t.

The May Toyota deals end on June 1, 2010.

The extended deals do not include much in the way of direct factory-to-customer rebates but have very hefty factory-to-dealer cash (“marketing support”) which translates into customer price discounts.

There are 0% APR loan deals on eight different Toyota models, which is much better than paying the normal interest rate of 6.96% (Bankrate.com) and saves thousands of dollars in finance costs. Customers must choose between the special loan deals and discounted prices.

Toyota is also offering excellent lease deals on many models and styles. These deals are based on discounted prices, low money factors (finance charges), and high lease-end residuals. All these factors result in a lower than normal monthly payment. If you don’t understand leasing, we recommend that you take a few minutes to learn about it at LeaseGuide.com.

Additionally, Toyota is providing 2 years of free scheduled maintenance, up to 25,000 miles, which is a big money-saver in itself.

The company is trying hard to restore customer confidence in its vehicles after the unfortunate events of the last few months. Toyota has a reputation for building some of the highest quality, most reliable vehicles in the industry. We have no doubt that the recent isolated problems will make their products and service even better than before.

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.

For example, the Toyota Corolla LE with lots of extra equipment and options is being offered for $149 a month. This is a 36 month lease, 36,000 total miles allowed, and $1999 is due at lease signing. The $1999 includes a $1200 down payment, first month’s payment (standard in leasing), and a $650 acquisition fee (standard in leasing).

If you cannot afford the $1200 down payment, you can pay less but, of course, the monthly payment amount goes up. For example, if you can only afford $500 down, the payment goes to $169. If you can afford no down payment (but still pay the first month’s payment and the acquisition fee), the monthly payment goes to $182.

How can Toyota offer such great lease deals?

First, the price of the car has been discounted about $2000. Second, the lease-end residual value has been set much higher than normal, and finally, the lease money factor is .00002, which is equivalent to a very low 0.5% APR interest rate. The combination of these three things makes for a very low monthly lease  payment for this excellent automobile. It just doesn’t get much better.

If this explanation doesn’t make sense to you and you don’t understand car leasing, we recommend strongly that you learn how leasing works before you decide to lease. We suggest LeaseGuide.com, one of our sister web sites.