Auto Dealers Offer Freebies to Drive Up Sales
Car dealers and manufacturers are showing a "let's-make-a-deal" attitude as they work to reel in customers in the midst of a sputtering economy, according to the Denver Post.
The promotions come in the wake of the terrorist attacks Sept. 11 that threaten to further damage an already struggling economy.
The National Automobile Dealers Association (NADA) had expected auto sales to be about 5
percent less than last year's 17.4 million vehicles, according to Paul Taylor, NADA chief economist. But the attacks on the World Trade Center and Pentagon sent sales spiraling downward.
General Motors began offering zero-percent financing on Sept. 19; Ford and then Chrysler quickly followed. Sales at Suss Pontiac GMC in Aurora, Colo., which were already good, increased between 17 percent and 18 percent after the new financing plan was announced, according to Suss sales director Jerry Johnson.
The auto business wasn't doing badly before the Sept. 11 attacks, according to NADA's Taylor. Last year, a record-breaking 17.4 million cars and light trucks were sold, and NADA had expected a decrease of about 870,000 vehicles this year. Sales throughout the industry are now expected to settle at 16.4 million vehicles for 2001, according to Taylor. Achieving that number would make it the third best year in
history, behind only 1999's 16.9 million and the 2000 record.
Eliminating the financing charge will hurt automakers' bottom lines but could help keep them afloat in the present downturn, Taylor said.
A two-for-one promotion has popped up at one Denver-area dealership. The dealership is sweetening its sales on new and used Isuzu Troopers and Rodeos, giving used Kia Rios or
Geo Metros at no charge to shoppers who buy one of the SUVs at sticker price. New Troopers go for $33,000, and Rodeos sell from about $29,000. Fair market value on the used 2001 Kias, which have racked up between 10,000 and 20,000 miles and are mostly former rental
vehicles, is from $7,400 to $7,500, according the NADA Used Car Guide.
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