Era of big rebates (on cars) winds down (but in some cases, things ...

[Bozita]

... remain the same)

http://www.detnews.com/2005/autosinsider/0508/02/A01-266960.htm

Tuesday, August 2, 2005


Era of big rebates winds down

Big 3 lower prices on many 2006 models in effort to wean customers from costly incentives.

By Eric Mayne and Ed Garsten / The Detroit News


In an aggressive bid to cure consumers of their addiction to incentives and shore up profits, Detroit automakers are moving toward everyday cut-rate pricing.

General Motors Corp., Ford Motor Co. and DaimlerChrysler AG's Chrysler Group are slashing sticker prices on many 2006 car and truck models by as much as $6,300, or 18 percent, compared to 2005 models.

It marks a dramatic change for shoppers and an industry used to selling and buying based on the latest deal or cash rebate -- particularly since GM sparked an incentive war following Sept. 11, 2001.

"When you have several thousand dollars on a vehicle, something is out of whack," Ford spokesman Dan Bedore said.

more...

[dbt]

1. Jeebus. How LONG has the industry been trying to wean customers

away from incentives and rebates?!?! I've heard the howling from dealers for better than twenty years and nothing ever changes. One manufacturer does it out of fear that another one will do it if they don't.

And why in hell did they begin the incentives-and-rebates thing in the first place? Why didn't the makers just chop that amount of money off the PRICE? Could that have had anything to do with CONSULTANTS?

[Tesha]

2. Um, "because they were selling worthless crap"?

> And why in hell did they begin the incentives-and-rebates thing in the first place?

Um, "because they were selling worthless crap"?

Tesha