: Rebates



Brett
02-20-03, 10:22 PM
little quiet around here tonite

i was at a caddy dealer the other day and the salesman said i could 4500 in rebates currently on a new STS plus they'd knock the price down a few thousand(fully loaded around 52k)...i mentioned my sls was still under lease and they said they'd pay up to 6 of my payments...youguys think these incentives are good or a little dangerous...i dont see this stuff at lexus,MB,et al. ...i know they gotta move cars but this was kindof ridiculous

kcnewell
02-20-03, 10:26 PM
They're advertising the same stuff on the radio out here. I just heard it today! Slow economy and the high end cars aren't selling!

elwesso
02-20-03, 10:36 PM
How could the rebates be dangerous. They just want to move cars. We are looking at a new SUV (and as it turns out getting a new suburban), and the rebate for that is about 1000. For the avalanche, it is a 2500 rebate. They are also trying to get rid of them before tax time.

Brett
02-20-03, 10:40 PM
Originally posted by elwesso
How could the rebates be dangerous. They just want to move cars. We are looking at a new SUV (and as it turns out getting a new suburban), and the rebate for that is about 1000. For the avalanche, it is a 2500 rebate. They are also trying to get rid of them before tax time.

it cheapens the brand, the guy was offering me a fully loaded STS with Nav,Sunroof,etc...for 52000 minus 4500 plus they would make 6 payments on my lease at 681 each so:

52000
- 4500
- 4086
so i could get a brand new loaded STS for an effective price of $43414...that cannot help resale value of used Caddys...this is cadillacs top of the line car

BeelzeBob
02-21-03, 12:17 PM
Unreal. At any cost, I'd love to have the money NOW for a car.. Jeeez. Are you gonna take them up on this offer? What colors are available to you?

Katshot
02-21-03, 12:59 PM
Brett, You're right about the resale value issue. Matter of fact, the current rebate craze is literally KILLING the leasing industry since it's destroying the residual. It's a major issue in the industry right now but unfortunately GM's Rich Wagoner is heading the charge of the rebate army and has proclaimed to the rest of the industry to "quit whining".
I think all the rebates and 0% finance rates are VERY short-term thinking that will have LONG-TERM adverse affects.
Remember what happened to Ford when all those damn-near given away Expeditions started coming in off lease?
It was a disaster.

HotRodSaint
02-21-03, 02:50 PM
Originally posted by Katshot
Brett, You're right about the resale value issue. Matter of fact, the current rebate craze is literally KILLING the leasing industry since it's destroying the residual. It's a major issue in the industry right now but unfortunately GM's Rich Wagoner is heading the charge of the rebate army and has proclaimed to the rest of the industry to "quit whining".
I think all the rebates and 0% finance rates are VERY short-term thinking that will have LONG-TERM adverse affects.
Remember what happened to Ford when all those damn-near given away Expeditions started coming in off lease?
It was a disaster.

GM is also largley credited with turning the economy around by offering those rebates right after 9/11. Amazingly the auto industry represents 25% of the American economy. I say amazingly because of thefe are many politicians who seem intent to destroying the industry.

While rebates are causing lower used car values, leasing was in a trouble long before the rebates.

Brett
02-21-03, 03:54 PM
Originally posted by Sal Collaziano
Unreal. At any cost, I'd love to have the money NOW for a car.. Jeeez. Are you gonna take them up on this offer? What colors are available to you?


its tempting but i dont know how i would feel buying a car that i know will be replaced in a year or so...as far as color, if they couldnt find a black one i wouldnt even consider it

Katshot
02-22-03, 12:40 PM
Saying that the auto industry represents 25% of the American economy is a pretty hefty statement. Id like to see where those numbers come from and how you or whoever defines "the auto industry". I'm relatively sure the production of new cars in the United States represents a far smaller percentage. Now if you're talking used cars, trucks, OEM and aftermarket parts production and sales, auto finish/refinish, automotive accessories, etc, etc, then you might be a little closer.
Even still, the issue of automotive GLUT is a very real one. The auto makers are constantly doing the "full steam ahead" routine but all the while, the cars have to go somewhere right? Cars are lasting much longer than they used to and there are way fewer automotive scrap yards than there used to be. So where are we supposed to PUT all these cars? We've got a catch 22 senario here. They made the cars last longer so people wouldn't HAVE to replace them so often, but they don't want to sell less cars because then they'll have to close factorys and lay-off workers. And the economic trickle-down would be tough too. So what's the answer?

HotRodSaint
02-22-03, 02:15 PM
Originally posted by Katshot
Saying that the auto industry represents 25% of the American economy is a pretty hefty statement. Id like to see where those numbers come from and how you or whoever defines "the auto industry".

Sorry. That should have read 25% of retail sales. You can go to www.census.gov to learn more.


Originally posted by Katshot
Even still, the issue of automotive GLUT is a very real one. ...So what's the answer?

http://www.autonews.com/article.cms?articleId=42555

Katshot
02-22-03, 04:14 PM
Sorry, but IMO, Rick Wagoner is a TOTAL idiot. The only BIGGER idiots are the people that believe in him.

HotRodSaint
02-22-03, 04:58 PM
Originally posted by Katshot
Sorry, but IMO, Rick Wagoner is a TOTAL idiot. The only BIGGER idiots are the people that believe in him.

Wow, what a strong argument. You've certainly changed my view of him! :D