http://www.thestar.com/NASApp/cs/Con...l=969048863851

They're addicted to incentives.

 

A local ford dealer is doing 0% financing AND 0 fuel costs until 07 this month. Everybodies doing it. Disposable income is disspearing and luxuires like new cars are apparently feeling it.

 

Doesn't surprise me car sales are down, especially after the new Gov't announced a 1% drop in the GST. I'm sure a lot of new car purchasers are waiting until after July 1st to make that purchase.

GM is probably trying to make it worth their while to buy now


Just my $.02

 

Pretty much every auto manufacturer offered to pay the 1% on purchases made before 1 July because they knew people would hold off.

 

True. What's the big deal with 1% though. You're not saving that much...

 

Well if you think about it, every 10,000 represents a $100 savings, and if I'm buying a $40,000 car I'm saving $400 which could be a couple of hours at a strip joint getting lap dances.

 

They do that to get rid of 06s models right before the 07s come out.

 

I think every car company has trouble selling current models in the summer when the next year is debuting in 1-3months.
Buyers are deciding to hold off a few months to buy the next model year then buy now and in a month or so the vehicle is hit huge with depreciation. Also, when the 07's come out, the 06's will be considered a year old to consumers..even if brand new really.
Some incentives are going to be necessary, just dont go crazy GM, like the employee discount for everyone. It sure did move vehicles though...

 

Compare Canadian and US pricing. In many cases there's plenty of margin to play with.

 

They're doing it cause they realize they have to be ahead of the consumer; when you screw people over with horrible service and shoddy products for several years whadya expect?