Detroit Foreign Rivals Have War Plan: Fat New Car Deals
The Big Three U.S. automakers, looking to ignite a sales boom, are offering consumers the biggest deals they have seen in months, according to the Wall Street Journal.
Car sales plunged during the first Gulf War, and auto executives are moving quickly to try and avoid a similar slump this time around, the Journal reported. With the new deals, which include some less-generous offers from Japanese and European automakers, the industry is betting that American consumers will keep shopping if the incentives are good enough, according to the Journal.
The best deals come from Detroit, but European and Japanese automakers are showing a new willingness to use incentives, the Journal said. For consumers this means deals that normally don't show up until the end of the model years are cropping up at the start of the spring selling season.
Another factor for consumers on the fence: Detroit's Big Three, Toyota and some other car makers are continuing to push through small price increases as the year progresses to offset some of the costs of incentives, according to the Journal. By returning to no-interest financing, automakers hope to focus consumers on the interest rate and not the sticker price, the Journal said.
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