Does anyone else think GM's new sales method for the 2004 MY is to keep 0% financing but offset it by raising prices and in some cases raise the prices so much so they could offer cash back and 0% financing together to attract buyers.

While the low Fed Funds Rate keeps money cheap and enables GM to offer 0% fiancing but GM will have to look to raising prices to increase profits because the 0% fiancing is runnning out of steam. While GM can sell older models at a discount but as soon as the all-new 04 and 05 models start coming they will have to think of new methods of attracting people to the sales lot.

WOW, I just thought of the greatest new sales method to attrack tons of new car owners to GM dealers. Make quality and good looking car thats price right and the sales will come. Instead of rebating $2000 on each car put an extra $500 into each car and make the interiors and exteriors first rate and bump up the HP in each model.

 

All of the big three of have raised prices at about the same rate this last year. It's usually an insignificant amount ($77?). Nothing to be alarmed over.

As far as delivering better content and quality, I think that is the path they are already pursuing. The new Grand Prix should be a good example. The new Malibu should also be a big improvement.

 

Your right that most car makers had to keep prices the same over the last couple years but I really think we are all going to see some significant price hikes in the years to come and especially if car sales continue to slide and auto makers will have to raise prices to offset fewer sales.

Trucks and truck-based SUV's have been cash-cows but if trends continue to migrate over to car-based SUV's and more restrictions on fuel economy standards are put on trucks then this will put downward pressure on profits.

 

Yes. The price bumps are generally small like you mention. Add to that the fact that pre-incentive wars, there were usually a few price bumps a year anyway, and while it is a bit more than normal, it's not too out of line.

My only fear on this is that when the rebates finally do go away, we'll be left with inflated sticker prices and no rebates.

 

Just remember small price hikes aren't unusual, but this is the 6th one this year...

 

I think as long as the incentives are still going on strong we wont see a huge hike from year to year, but as soon as the incentives and 0% finanacing disapear (soon or later it will happen) I think we are all going to get some major sticker SHOCK next time were are out buying a new car.