CASH BACK

It’s a Buyers Market for Small Car Shoppers

April 12, 2016 by admin Leave a Comment

Some of the best deals are for small cars.

You might have your eye on that small SUV, but if you’re trading up from a compact car the incentives for small cars are very strong as we reach the heart of the spring selling season.

Consumers continue to shift their interest from cars to trucks and SUVs, and that means demand for the former has fallen, while interest in the latter is soaring. And if you know anything about the impact of supply and demand on prices, incentives follow the low-demand vehicles.

2016 Jeep Renegade. — 2016 Jeep Renegade priced from $17,995.

Dodge Dart Discounted, Models Realigned

For example, sales of the 2016 Dodge Dart are down by about one-third year-over-year through the first three months of this year. Further, the entire segment is down by just over 5 percent and would be much worse off if Honda hadn’t updated the Civic. Notably, Civic sales are up 30.8 percent and have moved ahead of the previous category leader, the Toyota Corolla (down 7.1 percent).

To help move Dart sales, Dodge is doing a couple of things:

1. Incentives are strong, depending on region. Some models are marked down by up to $3,250. Low-rate financing is also available. Visit the Dodge website, enter your zip code, and check out the discounts in your area.

2. Three trim levels instead of five. Just past the halfway mark of the model year and the 2016 Dart now has two fewer trim levels. The three remaining trims were renamed and given engines to correspond to each level. Likewise, Dodge shuffled content, cut prices, and spread its package options across all three lines. All in all, the result should be a model better positioned to compete in a very tough segment.

2016 Honda HR-V. — 2016 Honda HR-V priced from $19,125

Financing and Cash Back Incentives

Toyota incentives also vary by region. In my area (southeast USA), the current deal is 0 percent financing for up to 60 months or 0.9 percent financing for 72 months. But those incentives are better elsewhere, including in Los Angeles, where Toyota is offering $1,500 cash back or low-rate financing. Furthermore, attractive lease offers are in play as well.

Demand for small SUVs is up 6.3 percent year-to-date, a modest number. But the biggest gainers are found in the entry-level, subcompact SUV segment as those sales are up a whopping 78.7 percent. Of course, there are four new products in the mix and are driving sales. These are: the Fiat 500X, Honda HR-V, Jeep Renegade, and the Mazda CX-3. The segment has expanded to accommodate the new models as customers shift their interest from small cars to SUVs.

Despite the strong sales, there are incentives on some of the smaller SUVs. At present, Jeep is offering 0 percent financing plus $1,000 cash back on 2016 Renegade models. The brand is also jockeying for market share, hence the discount.

Honda isn’t offering any special deals at the moment for the HR-V, but it is providing a lease deal on its hot-selling Civic. As for financing deals, Honda simply says “Please see your local Honda dealer for available offers.”

Incidentally, both segments offer comparable passenger and storage room, hence the comparison.

Sample Dodge Dart Savings

Using the Dodge build and price configurator, I spec’d out a mid-grade Aero model ($21,095). I then added the $1,250 6-speed automatic transmission and immediately that cost was fully offset by an “applied offer.” The net price came in at $22,090.

For a better deal, go to the next-level Dart GT and the discounts climb to $2,750 and the final price actually comes in lower at $20,340. You also get a larger and more powerful engine, while saving nearly $1,700 off the Aero price. With smart negotiating you can get the price down even lower, probably below $19,000.

Chevy v. Chevy Price Comparison

Of course, comparing models takes some theatrics, especially if the brand under consideration doesn’t offer both a subcompact SUV and a compact car such as Chevrolet and Honda do.

Chevrolet may offer the best example of the price differences between compact car (Cruze) and subcompact SUV (Trax). The 2016 Cruze is priced from $16,120 and the Trax starts out at $20,300.

With the Cruze, discounts of $1,000 and 1.9 percent financing apply to the LS Manual ($18,995) on up. Choose the Trax and you’ll get a $500 purchase bonus and you may qualify for 2.9 percent financing. Typically, you’ll pay about $4,000 more for a similarly-equipped Trax versus the Cruze. Add another $1,500 for all-wheel drive, available only with the Trax.

To sum up, similar-sized cars and SUVs offer significant price differences, especially after all incentives have been taken. If you really want an SUV, then by all means shop for one. But if you’re on the fence and money is a factor, bargaining down the price of a compact car can make a significant difference for your budget.

Sales figures courtesy of GoodCarBadCar.net.

On Sale Now: Chevrolet Volt

June 12, 2013 by admin 4 Comments

Electric vehicles are a tough sale as high prices keep customers away. The Chevrolet Volt is a plug-in hybrid electric vehicle, one that does not have the range restriction of pure EVs. Still, its steep sticker price has made the Volt a tough sell, something that GM hopes to overcome by offering incentives on 2012 and 2013 models.

Chevrolet Volt Rebates

With a base price of $39,995, the Chevrolet Volt is priced more than twice as much as the Chevrolet Cruze, the model it shares its platform with. The Volt, however, comes with a $7,500 tax credit, effectively lowering that price to $32,495. That’s still about $15,000 more than the Cruze and higher than what some pure electric vehicles such as what the Mitsubishi i-MiEV cost.

Chevrolet Volt

An earlier edition Chevrolet Volt.

Earlier this week, GM announced that it was slapping incentives on the hood of every 2012 and 2013 Volt model. Buy a 2012 Chevrolet Volt and you get a $5,000 cash rebate. Choose the 2013 Volt and you get $4,000 cash back. Some states offer incentives too, which means your final cost for a Volt may drop down to just north of $25,000. This for a vehicle with an approximate 40-mile electric-only driving range; a 1.4-liter gas engine kicks in when the electricity has been depleted.

Pricing and Lease Deals

GM’s move comes as its competitors drop prices on EVs as well. For instance, the five-passenger Nissan LEAF S can be had for as little as $21,300 when all tax savings are taken. Mitsubishi is currently offering a lease deal on the 2012 i-MiEV; a 2013 model has yet to be introduced. Honda has a special lease deal in place for its Fit EV and the Ford Focus Electric offers a similar deal.

EV sales targets have missed the mark across all model lines. Expectations were heady more than three years ago just before the first models rolled out. Nissan has had to scale back its production plans even as LEAF production moved from Japan to Tennessee. GM had high hopes that the Volt would usher in a new era as buyers flocked to the thriftiest vehicles. Embracing green technology, however, comes at a steep price, what many financially pinched Americans have decided is not a priority.

California Requirements

Although the Obama administration would love to see more EVs on the road, it is California that is pushing — even demanding — car manufacturers to fall in line. To keep selling cars in the Golden State, manufacturers must also offer an electric vehicle. So far, Hyundai has managed to skirt that ruling, but as its sales continue to rise it can no longer drive through that loophole.

Indeed, the Hyundai BlueOn appears headed stateside, a vehicle the Korean manufacturer hoped it would not have to export. The company still expects to begin shipping its first hydrogen-powered fuel cell cars in 2015, a model that would meet California’s requirements. However, the Hyundai EV looks like a go, but it may lose its odd name before it hits our shores.

Cadillac ELR

Even as GM has trouble selling its Chevrolet Volt, a second model will debut early in 2014. That model is the Cadillac ELR, a luxury coupe with chiseled features. Its price has not been announced, but likely it will sell for at least $60,000. That’s a price the well-heeled buyer can afford, but their willingness to buy one may not align with GM’s expectations.

See Also — Global Debut: BMW i3 Electric Vehicle

Photo courtesy of the General Motors Company.

How to Find a College Grad Car Deal

May 28, 2012 by admin 1 Comment

mortars — With college behind you, a new car may be in front of you.

They’re out there. And you may have heard some buzz about them. What am I talking about? New car deals for college grads.

It is true that car manufacturers are interested in getting the business of recent college grads. Grads typically are just launching their careers and some are shopping for their first new car. The clunker or hand-me-down car from mom and dad just doesn’t cut it — 20-somethings are in the market for new wheels, but they’re also looking for a lot of car for not a lot of money.

College Grad Shopping Tips

To help smooth the way to new car ownership, most manufacturers are offering highly publicized incentives to get a grads business. Read on for some tips on what to look for as you shop for a new or used car:

1. Grad program eligibility — You need not have graduated within the past few months to qualify for a new college grad program. General Motors, for example, extends its Best in Class Alumni & Student Discount program to college students who obtained a degree from any two- or four-year institution within the past two years. Current nursing school and grad students are also eligible. Similar programs from Hyundai, Ford, Toyota, Nissan and Fiat Chrysler are also available.

2. Proof of eligibility — Sure, you can tell the dealer that you qualify for a discount. But you’ll have to show proof that you graduated from college or are currently enrolled. Some manufacturers, such as Ford, encourage you to register online first. Ford’s College Student Purchase Program will send materials to your inbox once you are registered.

Eligibility proof usually includes furnishing a copy of your diploma or submitting proof that you are currently enrolled in school. Some manufacturers require a job offer letter from your future employer or recent pay stubs. Check the manufacturer’s website for current requirements or ask your dealer.

3. Know the rewards — Car manufacturers may offer different rewards and have varying requirements for you to receive a rebate or discount. If you lease or buy a Toyota model and finance your purchase through Toyota Financial Services, then you may be eligible for a $750 rebate, monies you can apply toward your down payment. You’ll need to show proof of graduation and have a job lined up.

Not all manufacturers offer a cash incentive. Honda and Mitsubishi provide low-rate financing, the latter through its College Graduate Program. The Mitsubishi program requires college grads to have a job lined up, one that they will start within 120 days, have a clean credit history and payments must be no more than 18 percent of the grad’s gross monthly income.

As of this writing, both Ford and General Motors are offering $500 back to college graduates. Nissan is updating its offer. Dodge and other Chrysler Group brands are more subtle with their programs, but a search of individual dealer websites shows a $500 rebate for recent college grads. If you can afford a BMW then its college graduate program can give you $1,000 back on a new car or $1,500 back on a Certified Pre-Owned BMW.

4. Other Incentives College grads should know that there are other incentives available for the taking. For instance, if a manufacturer is offering $2,000 back on a new car or low-rate financing or leasing, the college grad incentive is on top of that. Moreover, you should negotiate the best price on a new car first before talking incentives to get the lowest price possible from the dealer. You can do this by getting at least three bids from different dealers on like make/model cars before talking incentives. When you get your best price add in the general incentive first and then the college rebate. Lastly, ask about trading in your car or try to get more money for it by selling your car to a private party.

Know the Rules

All car manufacturers regularly adjust incentives throughout the year. We’ve updated the information here since the article was first published in 2012, but changes can happen at any time.

Not sure what incentives are offered? Just ask your salesperson. Likely, there is a program for you as manufacturers want to win your business now in hopes of keeping you in the brand fold for many years to come. Dangling a special incentive before your eyes is one of the ways that this is done.

Photo: April Bell