Automakers ready to make deals

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If you’re in the position to buy a new car, now is a pretty good time.

Since most Americans aren’t buying cars, auto manufacturers are handing out wads of cash to convince us to do otherwise.

You could get up to $5,000 in incentives to buy a 2008 Lexus ES 350 sedan. There may be up to $8,000 in incentives available for a 2008 Lincoln Navigator SUV.

Do I sound like a commercial? All I need is a goatee, sunglasses and a kitschy one-liner: Slice it!

"Automakers have been pulling out all the stops to keep motivating shoppers during these tough times," said Jesse Toprak, executive director of Industry Analysis for Edmunds.com, an automotive consumer information Web site.

"All the stops" means massive incentives.

The average automotive manufacturer incentive in the United States was $2,902 per vehicle in December. That’s up more than 8 percent from November and up 18 percent from December 2007.

"Never before has the December average incentive been this high," Toprak said.

The average incentive from U.S. auto manufacturers was $3,778 per vehicle sold in December, up $224 from November, according to Edmunds.com.

European and Japanese automakers also increased their incentives over the past two months. European automakers are offering an average incentive of $2,963, up by $451. Japanese automakers increased incentives to $1,738, up $57.

Only Korean automakers dropped incentives for their vehicles. They fell $141 from November to December, to an average of $2,466.

Edmunds.com estimates that the auto industry spent about $2.5 billion in incentives in December, up more than 23 percent from November.

The big three — Chrysler, Ford and General Motors — spent the most on incentives, about $1.6 billion. Japanese automakers were second, spending more than a half billion.

Toyota, the newly crowned world’s largest automaker, offered the most dramatic increase by percentage, nearly doubling its incentives. Toyota went from offering $1,067 in incentives per vehicle in December 2007 to $1,995 this past month.

"No automaker and no market segment has been immune to the economic fallout," said Michelle Krebs, an editor for AutoObserver.com, a subsidiary of Edmunds.com. "Total unit sales remain pathetic compared to original expectations, incentives on SUVs and trucks are at record levels even though gas prices are below two dollars per gallon, and Toyota incentives are double what they were this time last year."

Besides cash off a purchase, incentives also can take the form of low interest rates on loans and low lease rates.

Before the economic collapse in September, leasing represented about 10 percent of new car sales. In December, leasing made up about 13 percent of sales and represented about 50 percent of luxury vehicle sales.

Torprak explained: "Leasing allows consumers to get a lot of car for the money with no long-term commitment, and that is a very desirable proposition in today’s economy."

If you want to take advantage of these incentives, make sure you do your homework first.

The automakers pass incentives onto car dealers who may choose not to pass them on to consumers.

For instance, a dealer might tell you about the $1,000 customer bonus cash program available for a Lincoln Navigator, but forget to mention that there is another $7,000 in incentives available.

Edmunds.com regularly updates what incentives are being offered by automakers. Check out their Web site to find out the latest numbers.

In the meantime, I’ll try to work on my sales pitch persona: The Slicer.

If you have a question, tip or tirade, call the Road Warrior at 702-387-2904, or e-mail him at roadwarrior@reviewjournal.com. Please include your phone number.