Auto Incentives Up
Auto Incentives Up Save Email Print
Staunton, Va.
Posted: 4:32 PM Jan 5, 2009
Last Updated: 7:11 AM Jan 6, 2009
Reporter: Keith Jones
Email Address: kjones@whsv.com

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Ford Motor Company says its U.S. sales plummeted 32 percent in December as buyers continued to steer clear of showrooms due to economic uncertainty.

This month, the auto industry is reaching out to consumers with money-saving incentives.

Auto companies saw sales drop significantly from 2007 to 2008, and with the auto bailout, they're looking for ways to save you a buck and keep their plants in business.

Patrick Janes, with Staunton Hyundai Nissan Subaru, says, "Rebates and incentives right now are at all time industry highs. There's some amazing bargains out there. Obviously with the economy slowing down, they're trying to move some cars into the marketplace."

Janes says now is the time to buy, and several auto companies are pulling out all the stops to get your sale.

He says, "For 12 months, you buy a new Hyundai, and if you are involuntarily unemployed or you have a medical impairment and you lose your drivers license, they're going to buy the vehicle back from you."

Janes says the industry is trying to instill confidence in the consumer and credit scores are meaning less and less in 2009.

Jeff Jordan, with Elliot Chevrolet, says, "Typically the lower a credit score declines, banks price their money higher, which means the lower your credit score the lower you have to pay to borrow money."

Jordon says that General Motors dropped their minimum credit score requirement to be financed from 700 to 621. Janes says it's all about keeping the plants running, and to do that, they need to sell vehicles.

"There's a water level that they've now reached and they said we know it's going to take a lot of incentives," says Janes. "It's going to take value to the customer to be able to sell new cars in this marketplace."

Auto dealers hope these incentives will bring sales back up to where they used to be, but only time will tell.

The incentives are a reaction to auto sales plummeting. On Monday, GM, Ford, Toyota, and Honda all reported declines of more than 30 percent in December.

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