Drive Time
Best 2009 Year-End Car Deals
You’ve seen the ads on TV. Now see where the biggest savings really are.
By Mark Solheim, Senior Editor, Kiplinger's Personal Finance
December 15, 2009
Even with an uptick in business the past couple of months, 2009 is poised to be the worst year for the auto industry in decades. Only two carmakers -- Subaru and Hyundai-Kia -- will post sales gains for 2009.
Everyone else is trying desperately to clear inventory. In anticipation of higher production in 2010, automakers are piling on incentives and trumpeting the deals in an endless series of TV ads. Most of the promotions end January 4, but if you buy before New Year’s Day, Uncle Sam will put money on the table, too: You can deduct taxes and fees paid on up to $49,500 of the purchase price on your 2009 federal income-tax return (see “The Most -Overlooked Tax Deductions .”)
STEEPEST DISCOUNTS
The best deals right now are on 2009 models -- if you can still find them. According to Truecar.com, which reports average vehicle transaction prices, the 2009 models with the biggest discounts from sticker price (including incentives) are the Saturn Aura, Nissan Titan and Dodge Ram (all 24% off sticker price), Dodge Charger (22%) and Hyundai Sonata (21%).
Among the 2010 models, Truecar.com lists the Ford Ranger as the vehicle with the biggest discount (17% off sticker), followed by the Jeep Grand Cherokee (15%), Jeep Commander and Ford Explorer (14%) and the Mercury Grand Marquis (13%).
The best deals by brand -- also based on discounts from sticker price -- are on 2009 models from Dodge, Saturn, Hyundai Kia and Chevrolet. For 2010 cars, the best deals are found at Ford, Lincoln, Chrysler, Mercury and Volvo.
DOMESTIC DEALS
Incentives vary significantly by model, depending on how desperate the carmaker is to move it off dealer (or factory) lots. It’s no surprise that Detroit’s beleaguered carmakers are offering the most-generous cash rebates and low-financing offers. Chrysler and Jeep are pushing hard to move metal after their sales plummeted 38% in 2009 through the end of November.
Chrysler is offering up to $3,000 cash back or 0% financing on all Chrysler-brand vehicles, plus a no-cost service program for three years or 36,000 miles. Jeep is offering up to $4,500 or 0% financing, plus the free service program. Dodge offers $2,500 or 0% (but no service program).
General Motors is playing the incentive game, too. For example, at the Chevrolet Red Tag event, the 2010 Chevrolet Malibu has $1,000 on the hood (plus another $500 if you take a pass on GM’s 60-day money-back guarantee) or 0% financing.
But GM is offering the biggest discounts on its dying Pontiac, Saturn and Saab brands. You can get up to $3,500 back or 0% financing on a Pontiac Vibe small wagon (the Toyota Matrix’s twin). The 2009 Saturn Aura, a midsize sedan built on the same platform as the Chevy Malibu, has a hefty $4,000 rebate. And Saab 9-3 and 9-5 models come with up to $7,000 cash back to customers, as dealers try to unload inventory in the wake of uncertainty about Saab’s future.
Ford is promoting its slow-selling 2010 Edge SUV with up to $3,000 cash back. And you can claim up to $2,500 for the 2010 Flex SUV or the Focus compact, or choose 0% financing in lieu of the cash.
LEASING MAKES A COMEBACK
On the luxury front, leasing is where the steals are. Luxury brands hate to offer cash back, so they subsidize not-so-transparent leases to push slow-selling cars.
BMW is offering a three-year lease on the 2010 135i convertible (based on a sticker price of $45,700) for $469 a month with $3,000 down, and it has a three-year lease deal on the 2010 528i sedan ($47,600) for $479 a month with $3,500 down.
Cadillac has a $479 per month, 39-month lease on the redesigned 2010 SRX sport ute. It’s for the $40,130 Luxury model, with $3,994 due at signing.
Or you can lease a 2010 Mercedes-Benz GLK midsize SUV that stickers for $37,925 for 39 months for $459 a month, with $3,750 down.
Honda eschews cash rebates, but it’s offering a 36-month lease on a $22,565 Accord LX for $199 a month with $2,100 down. Honda’s luxury nameplate, Acura, is offering a 30-month lease on a $35,660 V6 TSX for $319 a month with $3,280 down.
You can lease the Volvo V70 wagon ($38,800) for 36 months for $479 a month with $1,999 down -- a bargain for the ultimate symbol of suburban success.
Lease deals can vary from dealer to dealer. But if you shop several dealers, you should be able to come close to these payments. In addition to a down payment, you may owe the first month’s payment and a security deposit.
For more details on current incentives, visit Edmunds.com.
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Reader Comments (11)
Posted by: C. Lambeth at 12/16/2009 01:57:24 PM
American brands cannot be discounted enough to interest me in buying any one of their shoddy models. The sooner these ancient and archaic companies finally die, the better off the world will be, not to mention U.S. taxpayers. How many times must we "bail them out" before we learn our lesson?
Posted by: Zeke at 12/16/2009 07:56:53 PM
GM can make all of the glitzy ads they can afford (while losing money) with recycled footballers as spokepersons, but the fact remains that they have a well-established record of building junk and leaving their customers standing with pockets inside out when it falls apart. No thanks.
Posted by: JOhn at 12/17/2009 09:56:04 AM
Personally, I prefer some of the GM products over other models that are out there, but you will not see me buying one out of principle. I refuse to buy a car from a company that has become the perfect example of politics gone bad. Government subsidized and heavily-pandered to the UAW (which we all know is the reason American car companies cannot compete) are reasons to start. Then to top it off....we're paying for it. I'm over GM and Chrystler for sure....still reaching my verdict on Ford.
Posted by: Ben Hurst at 12/17/2009 10:24:12 AM
Everyone thinks Toyotas are so great. Well I have had problems with both BRAND NEW vehicles I had purchased within the past 5 years. 2007 Toyota Prius-went through not one but TWO hybrid battery replacements the first year. The service folks didn't know what they were doing. Told me to remove a fuse to avoid this issue or make sure I started it every three days. Who the heck is going to do this for me when I go on vacation??? 2008 Highlander-The brakes make noise and the DAC (downhill assist control) light comes on when I press the brake even if the button isn't suppressed. The gas mileage isn't that great and the ergonomics suck. I will be unloading these to buy another brand...
Posted by: Bob S at 12/17/2009 11:18:21 AM
Apparently these two posters have not read about all of the recalls of Toyota vehicles. Being bigger is not always better as Toyota is currently finding out. If these two would get out of the Dark Ages and read the latest reviews, they would find that there is not much difference in quality between Ford/GM and their Asian counterparts...
Posted by: Jerry G at 12/18/2009 05:26:19 PM
Ignorance ain't always bliss, GM & Ford are now making some of the best cars in the world. They dominate the top 10 list. Wake up you outdated snobs!
Posted by: Binky Binkerman at 12/20/2009 11:23:50 AM
GM cars; no way that I am going to support that union theft of the company.
Posted by: H. Simpson at 12/20/2009 01:52:03 PM
Chrysler is the best! Sure their vechicles fail just about every 6 months but with all that taxpayer money they will pay to fix they up right?
Posted by: Nomen at 01/07/2010 07:44:54 PM
I find this American brand and union bashing interesting considering the fact that such a small amount of the stimulus money was used to aid so many auto workers and their suppliers(union and nonunion) compared to the huge bail out for the horribly overpaid on Wall Street and the Financial industry who got more in bonuses than the whole auto industry put together. When loyalty and patriotism die, so will the country.
Posted by: G Dress at 01/28/2010 03:16:18 PM
I think this was an excellent article. Being flipped $4000 in my current trade, it's nice to see a snapshot of all the manufacturers' offers. This helps to see what models to look at in order to bury the negative equity in rebates. Thanks!
Posted by: Rob at 05/11/2010 10:04:28 PM
Not only can car lease deals vary from dealer to dealer, but you can sometimes get a better price than the advertised lease special. For example, May 2010 lease specials, Toyota is advertising a Corolla S for just $129.00 a month and $899 down. Ask them if they will make you a deal for $129.00 and NO MONEY down. It never hurts to ask for a better price. Leasing is negotiable no matter what the circumstances may seem.