Incentives for Moving the Metal
Incentives for Moving the Metal
Automakers can get quite skittish about offering car buyers too many incentives. The profit per sale diminishes when rebates and low APR loans run too deep. It's always been something that Japanese automakers have avoided as much as possible to strengthen profits, but they're more prone to go that route now, especially Toyota with the massive recall crisis it's wading throug
It's interesting to see that every hybrid on the market in the U.S. has some incentive attached to it, including the Toyota Prius. The Prius has made up a big chunk of hybrid sales in this country, and probably will continue to do that once the braking problem gets resolved. Its buyer incentives are not as large as those being offered by its competitors, but that could increase if sales diminish rapidly.
True Cost of Incentives
Edmunds.com is tracking manufacturer incentives on hybrids. For example, the 2010 Cadillac Escalade Hybrid is available to buyers with up to $2,000 in rebates and 1.9% APR finance for a 36 month loan. The 2010 Ford Fusion has rebates up to $1,000 available, and $400 rebates are offered on the 2010 Toyota Prius. It's helpful to watch automaker incentives, which Edmunds.com has done for years in its True Cost of Incentives analysis. Perhaps hybrids and other green machines will become large enough in sales to merit their own incentive comparisons. Read more.