New Car Deals for October 2009

       Iguida.com highlights the best new car deals of the month in 11 vehicle categories, including Hybrids, compact cars, midsize cars, and SUVS. These top deals are based on the automakers’ current sales incentives.

Generally, three types of incentives apply:

• CONSUMER CASH REBATES: Our top consideration is always given to consumer cash rebates. This is cash paid by the manufacturer to you. You can accept the rebate in the form of a check after the sale, but most people treat it as a part of the negotiating process. For example, Hyundai is offering a $2,000 cash incentive on its 2009 Elantra compact car. As you negotiate the price of the new car, you can apply the $2,000 directly to your down payment to reduce the amount you’re financing. Or you can tell the dealer to deduct it from the vehicle’s transaction price in a cash sale. Note that when we list consumer rebates as being “up to” a certain amount, this represents a combination of offers the manufacturer may be putting on the table. And be aware that we don’t include group-specific incentives, such as rebates for military personnel or recent college graduates, and we don’t include customer-loyalty incentives.

• MARKETING SUPPORT: Our second consideration is direct-to-dealer marketing support from the manufacturer. These are sometimes called “dealer support” or “secret rebates” because they’re rarely publicized and the dealer doesn’t always pass the rebate on to an uninformed car buyer. For example, Mercedes-Benz is offering $14,000 marketing support on its 2009 S550 sedan. Indeed, these incentives are often used by luxury automakers to help their dealers move slow-selling models without “cheapening” the brand by advertising a rebate or cutting the retail price. There’s no guarantee the entire amount of the incentive will be passed along to a consumer. But knowing such an incentive is in effect can give you an advantage when you negotiate the transaction price on a given model.

• LOW-RATE FINANCING: Our third consideration is low-rate financing offered to buyers by an automaker’s so-called captive-financing divisions. These incentives can be as low as zero percent interest on a loan and can include loans as long as 72 months. On its 2009 Cobalt compact car, for example, Chevrolet is cash offering up to $1,500 cash and 1.9%-4.9% financing to 72 months. While they can save you thousands of dollars over the term of the loan -- particularly if you’re buying an expensive car -- the lowest interest rates typically are limited to buyers with spotless credit records. And you should always check with other lenders – banks, your credit union -- to see how their rates compare with the automaker’s low-rate financing. Finally, note that the incentive may also involve a cash rebate in lieu of discounted financing. In the 2009 Cobalt example, Chevy is also offering the alternative of a customer-cash rebate of up to $3,000. Be sure to run the numbers both ways to see which will ultimately result in the better deal for you.

       Hybrids were a hot item last summer, before the economy tanked and gas peaked at more than $4.00 a gallon. Today, with fuel costs scaled back and the economy dampened, demand for hybrids has cooled considerably. Rebates are especially high for costly full-size hybrid trucks, which are difficult to justify in terms of their relatively modest fuel savings.

Here are the Best New Car Deals on Hybrids for October 2009:

1. 2009 Chevrolet Tahoe/GMC Yukon Hybrid: up to $5,000 cash
2. 2009 Chrysler Aspen/Dodge Durango Hybrid: $4,500 cash
3. 2009/10 Chevrolet Malibu Hybrid: up to $2,500 cash
4. 2010 Chevrolet Silverado/GMC Sierra Hybrid: $2,000 cash
5. 2009 Honda Civic Hybrid: 1.9%-2.9% financing to 60 months and $750 marketing support

       The recent “Cash for Clunkers” program winnowed dealers’ stock of  the smallest and most fuel-efficient models, so automakers’ deals in this class are relatively slim.

Here are the Best Deals on Subcompact Cars for October 2009:

1. 2009 Chevrolet Aveo: up to $2,750 cash or up to $1,250 cash and 5.9% financing to 72 months
2. 2009 Hyundai Accent: $1,500
3. 2009 Nissan Versa: $1,200 or 0.0 %-1.9% financing to 60 months
4. 2010 Kia Soul: 0.0% financing to 36 months
5. 2009 Honda Fit: 5.99%-6.49% to 72 months

       As with subcompacts, compact cars were popular purchases in this summer’s “Cash for Clunkers” promotion, so dealers have relatively few in stock, but we did manage to find a few good deals.

Here are the Best Deals on Compact Cars for October 2009:

1. 2009 Chevrolet Cobalt: up to $3,000 cash or up to $1,500 cash and 1.9%-4.9% financing to 72 months
2. 2009 Kia Spectra: $3,000 cash
3. 2010 Chevrolet Cobalt: up to $2,000 cash or up to $1,500 cash and 4.9%-6.9% financing to 72 months
4. 2009 Dodge Caliber: $2,000 cash
5. 2009 Hyundai Elantra $2,000 cash

       This is the heart of the market and where the effect of slumping auto sales really hurts. That slump is reflected some truly generous incentives put in place to help clear dealers’ model-year 2009 inventories.

Here are the Best Deals on Midsize Cars for October 2009:

1. 2009 Buick LaCrosse: up to $4,500 cash or up to $2,000 cash and 4.9% financing to 60 months
2. 2009 Mitsubishi Galant: $3,500 cash or 0.0%-1,9% financing to 72 months
3. 2009 Chevrolet Malibu: up to $3,000 cash or up to $2,000 cash and 3.9% financing to 60 months
4. 2009 Hyundai Sonata $3,000 cash
5. 2009 Kia Optima: $2,500 cash

       This is a class of cars in whcih savings are plentiful, with generous incentives being the norm.

Here are the Best Deals on Full-Size Cars for October 2009:

1. 2009 Buick Lucerne: up to $5,500 cash or up to $3,000 and 4.9% financing to 60 months
2. 2009 Chrysler 300/Dodge Charger: $4,500 cash or 0.0% financing to 72 months
3. 2009 Chevrolet Impala: up to $4,000 cash or up to $1,500 cash and 4.9% financing to 60 months or 0.0% to 72 months
4. 2009 Pontiac G8: $3,500 cash or 5.9% financing to 72 months
5. 2009 Toyota Avalon: 0.0% financing to 60 months

       Luxury automakers are feeling the sting of the recession more deeply than their bargain-priced counterparts, though they’re loathe to slap big cash rebates on the windshields. Still, it looks like Mercedes-Benz buyers should be able to strike stellar deals almost across the line.

Here are the Best Deals on Premium Cars for October 2009:

1. 2009 Mercedes-Benz CL550/SL550: $15,000 marketing support
2. 2009 Mercedes-Benz S550: $14,000 marketing support
3. 2009 Mercedes-Benz CLK-Series: $10,000-$13,000 marketing support
4. 2009 Cadillac XLR: up to $10,500 cash or $500 and 4.9% financing to 60 months
5. 2009 Mercedes-Benz E-Class: $8,000-$12,000 marketing support

       Dealers must not be having a hard time satisfying enthusiasts’ need for speed because we had a difficult time finding big-time incentives among sporty cars this month.

Here are the Best Deals on Sporty Cars for October 2009:

1. 2009 Mazda RX-8: $5,000 cash or 2.9%-4.9% financing to 72 months
2. 2009 Chevrolet Corvette: up to $4,500 or $500 and 0.0%-3.9% financing to 72 months
3. 2009 Pontiac Solstice: $2,500 cash or 5.9% financing to 72 months
4. 2009 Mitsubishi Eclipse: $1,500 cash or 0.0% financing to 72 months
5. 2009 MazdaSpeed3: $750 cash

       You want a deal? Buy a 2009-model-year pickup. It’s that simple. Rebates on full-size models are as generous as they are plentiful.

Here are the Best Deals on Pickup Trucks for October 2009:

1. 2009 Chevrolet Silverado/GMC Sierra: up to $6,500 cash or up to $3,000 cash and 2.9-4.9% financing to 72 months or 0.0% to 72 months
2. 2009 Dodge Ram: up to $6,500 cash or $2,000 and 0.0% financing to 72 months
3. 2009 Nissan Titan: $5,000 cash or 0.0%-1.9% financing to 72 months
4. 2009 Chevrolet Avalanche: up to $4,500 or up to $1,000 and 2.9-4.9% financing to 72 months or 0.0% to 72 months
5. 2009 Dodge Dakota: $3,500 cash

1. 2009 Chrysler Town & Country/Dodge Grand Caravan: up to $4,500 cash or $1,000 and 0.0%-2.9% financing to 72 months
2. 2009 Nissan Quest: $3,000 cash or 0.0%-2.9% financing to 72 months
3. 2009 Kia Sedona: $2,000 cash
4. 2009 Volkswagen Routan: $1,500 and 0.0% financing to 60 months
5. 2009 Honda Odyssey: $1,250 marketing support or 2.9% financing to 60 months

       Large SUVs once ruled the market and stuffed the most profits into automakers’ coffers. But slumping sales in recent years means big bargains if you have a purposeful need for a big SUV -- and can afford to keep its gas tank filled.

Here are the Best Deals on Sport-Utility Vehicles for October 2009:

1. 2009 Cadillac Escalade: up to $7,500 cash or up to $3,000 cash and 5.9% financing to 60 months or 0.0% to 72 months
2. 2009 Chevrolet Suburban/GMC Yukon XL: up to $6,500 cash or up to $5,000 cash and 5.9% financing to 60 months or 0.0% to 72 months
3. 2009 Chevrolet Tahoe/GMC Yukon: up to $6,500 cash or up to $5,000 cash and 5.9% financing to 60 months or 0.0% to 72 months
4. 2009 Infiniti QX56: $6,000 marketing support or .0.%-2.9% financing to 72 months
5. 2009 Cadillac SRX: up to $4,500 cash or up to $1,500 cash and 5.9% financing to 60 months or 0.0% to 72 months

       These are essentially SUVs that are based not on truck-type chassis but on a lighter, car-type “unibody” structure. More refined and fuel-efficient than old-school sport-utility vehicles, crossovers are largely supplanting both big SUVs and minivans as popular people movers. We found a few great deals at both the high- and low-end of the pricing spectrum, mostly on 2009 closeouts.

Here are the Best Deals on Crossover SUVs for October 2009:

1. 2009 Mercedes-Benz GL450/550: $10,000 marketing support
2. 2009 Infiniti FX50: $6,000 marketing support or 0.0.%-2.9% financing to 72 months
3. 2009 Suzuki XL7: $4,000 cash or $2,000 and 0.0%-4.9% financing to 72 months
4. 2010 Mitsubishi Endeavor: $3,500 cash or 0.0%-2.9% financing to 72 months
5. 2009 Kia Sorento: $3,000 cash