This is not an angry rant: I am just trying to be educational and provide additional points to consider..... I know you can see it is long, but please keep reading.
Each of the Big 3, GM Ford and Chrysler, have been struggling for years to reduce and hopefully eliminate the need for sales incentives in order to move the metal. The ultimate goal is to motivate buyers to buy a vehicle because they really want it, not because of the rebate, cash back, reduced rate financing, employee pricing, sales event, or myriad other incentives used to trigger a purchase.
The Big 3 are facing complete bankruptcy due to this incentive game. I am not talking bankruptcy to restructure and continue operations, I mean obliteration, vaporization, and liquidation of the companies. Lock the doors, and everybody go home. Think of the huge (thought unsinkable) companies that no longer exist: Pan Am (the Beatles flew on Pan Am!), TWA, Montgomery Ward, Oldsmobile, Zenith (still a brand but not the orginal company), Schwinn (ditto), just to name a few.
Ford has mortgaged everything they own: the land under the factories, the factory buildings, and all of the machine tools within, to the tune of about $20B, in order to continue operations for several more years "until profitability returns." GM's current total debt load is about $65B, and they are losing billions more per quarter. How long can they survive when they cannot even pay the interest on these obligations? Chrysler residual values have been destroyed by the highest incentive costs in the auto industry!
Toyota and Honda generally do not engage in these practices, because they do not need to--people want to buy their stuff!! At pretty much sticker price!
This website is full of people who want Patriots, but can't yet find them due to extremely limited supply. This is a dream situation for any manufacturer--demand outstrips supply. Yet, they are still expected to incentivize to move an inventory that does not exist??
Save your money for a down payment, buy one at a fair price (so the manufacturer and dealer make a reasonable profit so that they can continue to exist for many more years), and drive happy. If you take a loan, and don't like the interest rate, make bigger payments and pay it off faster (which will save you money on interest).
I know consumers are addicted to "the deal" but it is destroying the auto industry right before our very eyes. I know there is no status in overpaying for anything, but let's think about the big picture.
Lee Iacocca made his bones at Ford for offering a financing deal: a new 1957 Ford for $57/month for 2 (two!) years. So, the incentive thing has been going on for a looonnnggg time
This is not a buy American rant: I am just trying to say buy everything based on how well it fits your needs/desires/expectations on its own virtues (be it a Toyota, Honda, Jeep etc). Don't buy a vehicle because of a special incentive--it will cost you more $ over time, one way or the other.
