Manufacturers Offer Richest Incentives Since Cash for Clunkers

Auto Observer

After dismal September car sales due to the hangover from the government's Cash for Clunkers program, auto manufacturers have ramped up incentives in October as they have ramped up production to refill the inventory pipeline, according to Edmunds.com.
The incentives show manufacturers are extremely eager to sell off 2009 models left in inventory. But automakers are also offering incentives on newly launched 2010 models.
"This year has been a wild ride for automakers, and it's not over yet," said Edmunds.com Senior Analyst Jessica Caldwell. "No segment is unaffected by the current round of incentives, though luxury models and trucks are being discounted particularly heavily."
Low-interest financing, including zero-interest financing, and cash rebates dominate the landscape, but subsidized lease programs, almost non-existent in the past years, are proliferating as well.

Luxury makers, particularly Mercedes-Benz, are offering great deals as is General Motors, which is offering 0-percent financing on many models. Some hybrids and diesels are also on sale.
Here are some highlights of Edmunds.com's True Market Value (TMV) Deals of the Month, which are deals that Edmunds.com has determined offer the most savings to consumers.
General Motors: Back in the Game
… In September, GM launched its massive May the Best Car Win campaign, starring GM's government-appointed chairman Ed Whitacre and including a 60-day money-back guarantee. More recent advertising focuses on GM's four core brands - Buick, Cadillac, Chevrolet and GMC -- and specific models. GM's Bob Lutz, now in charge of marketing, said last week GM will be "more aggressive" and spend big on advertising.
In addition, GM is spending significantly on incentives. The automaker is offering zero-percent financing on many models. …
October Is Truck Month for All
After lousy sales of big profit margin trucks in September, dealers begged GM to bring back the annual October Truck Month extravaganza. GM obliged and is offering low-incentive financing as well as large cash rebates on trucks.
But, while GM and its domestic competitors Ford and Dodge area also heavily advertising truck month, Nissan is offering the beefiest incentive on trucks, including its full-size Nissan Titan pickup: $5,0000 cash rebates or zero-percent financing for up to 50 months and 1.9 percent for 72 months.
However, despite trucks being a heavily leased segment, the truck segment is the only category in which Edmunds.com's Deals of the Month do not show a lease program.
Lap of Luxury Now Cheaper
Luxury car sales have been pounded by the recession, and it shows in the Deals of the Month in October.
The fashion-conscious luxury segment is particularly sensitive to model changeovers so it's critical for luxury makers to ditch the old models quickly. To that end, several attractive deals are available on leftover 2009 models.
With summer over, convertibles are on sale. GM is overing up to a $4,000 rebate on its Chevrolet Corvette or zero-interest financing for up to 60 months. The 2009 Audi A4 convertible is also discounted this month.
Long-suffering Saab, which is being sold by GM, has $6,000 to $7,000 dealer incentives on the Saab 9-3 Convertible and Saab 9-5.
On the cheaper end of luxury, Mini has been heavily advertising its 1.9-percent finance rate on the 2009 Mini Cooper.
Having reported a 13-percent sales decline in September, Mercedes-Benz, in particular, is offering a number of great deals on 2009 models, mostly as cash to dealers that can be passed along to buyers. For instance, Mercedes-Benz SL has a hefty $15,000 dealer incentive….
Alternate Power On Sale
BMW is offering a "Diesel Credit" on all of its diesel models. It is offering a $4,500 credit on the diesel-powered X5 SUV and the 335d.
In addition to the Saturn Aura Hybrid, GM is offering a $4,000 rebate on the pricey Cadillac Escalade Hybrid. Chrysler is offering $4,500 off or zero-percent financing on the Chrysler Aspen Hybrid, which shares the same two-mode hybrid technology as the Escalade but the Aspen was barely launched before the automaker pulled it off the market.
Even Honda's new Insight hybrid is available with a specially priced $199 a month lease.
Family Deals
A handful of minivans are on sale. The biggest discount is on Chrysler's Town & Country minivan, which has a $3,500 cash rebate or zero-percent financing for up to 60 months. The Nissan Quest has a $3,000 rebate. The Volkswagen Routan, based on the Chrysler minivans, offers zero-percent financing. And Honda is providing a special lease rate on its Odyssey.
Other models on Edmunds' great deals list for October include the Chevrolet Malibu, Dodge Charger, Honda Civic, Mazda6, Nissan Altima, Suzuki SX4, Volvo C30, Volkswagen Rabbit and Passat. -- Michelle Krebs, Senior Analyst and Editor at Large
Photos by manufacturers
1 - GM is offering a $2,500 rebate or zero-percent financing on the Pontiac Solstice. (Photo by GM)
2 -  Nissan is offering a $5,000 cash rebate on its Titan pickup. (Photo by Nissan)
3 - Mercedes-Benz is giving dealers up to $15,000 in incentives, which can be passed onto consumers, on its luxury cars, including the Mercedes-Benz SL. (Photo by Mercedes-Benz)