'Tis the Season - For Great Car Deals

The months of November and December are traditionally great months for car deals because car manufacturers know that most people have their attention on the distractions of the holidays -- which means slow car sales -- and slow sales means great deals.

General Motors just launched their "Red Tag" sales, good until January 3, that offers the best deals since the popular "Employee Price" sales of the Fall. Discounts on left-over 2005 models and many new 2006 models are outstanding.

Volkswagen is offering heavily subsidized leases on the Passat and Jetta, both good deals.

Chrysler and Ford are offering both heavy rebates and financing incentives to make for some very attractive deals.

Honda has some super lease deals on some popular models in their lineup.

Mini, Porsche, and Lexus are offering reduced rate loans on selected models. This is very rare for these car makers.

Toyota, Mazda, Subaru, and Mitubishi are offering attractive rebates, especially on 2005 models. Most of these deals end November 30.

Car dealers are hungry for customers at this time of year. If you can break away from the holiday activities for a while, you might be surprised at the good car deals that you find.

Prices are Changing - Again

GM just announced an aggressive new pricing strategy called "Red Tag" prices on many 2005 and 2006 models of GMC, Buick, Pontiac, and Chevrolet vehicles, good through January 3, 2006. The new prices represent as much as $4000 discount on selected vehicles. Cadillac, Hummer, Saab, and Saturn vehicles are also discounted, although to a lesser degree. These discounts apply to purchases as well as leases.

Ford also offers a number of attractive rebates, as much as $6000 on some 2005 models such as the Freestar and Mercury Monterey. Ford rebates are good through January 3, 2006.

Chrysler has current rebates as well, with most expiring November 30, 2005.

Note that GM's new strategy is a price discount, not a rebate. This is part of a new "value pricing" plan that hopes to convince consumers that the new prices are fair and need not be negotiated further. Ford and Chrysler may soon follow with discounted "value" prices.

Certified Car Programs - Best of Best

Intellichoice, Inc. annually ranks car makers' certified used car programs. They ask consumers what they liked and disliked about the certification programs. This year, Volkswagen and Jaguar had the highest ranked programs.

Certification programs are now offered by all major car manufacturers. Certified vehicles, sold on dealers' pre-owned car lots, are typically late-model, low mileage vehicles that have been inspected and maintained according to the manufacturer's specifications, and provided with a manufacturer-backed warranty. Cost for certified vehicles is generally higher than other vehicles.

Small Cars on the Way

Asian car makers such as Toyota, Honda, Kia, and Hyundai believe that U.S. automotive consumers are ready for small (read, tiny) cars that have been popular overseas for many years. Even Chevrolet is getting into the act with a Korean-made model, the Aveo.

What's the appeal? These cars, like the Toyota Yaris pictured here, are inexpensive and get outstanding fuel economy -- the perfect 0ne-person or two-person commuter car. The big difference between the new cars and mini-cars of some years ago is much improved quality. So, for about $10,000 you get a great little car that does about 35 miles on a gallon of gas.

Companies Help Employees Buy Hybrids

Some major companies are now giving employees cash to help buy fuel-efficient vehicles, according to an article in Business 2.0 magazine.

The article reports that some environment-conscious companies such as Hyperion, Google, and Timberland offer a bonus to employees who purchase or lease vehicles with high EPA ratings, which usually means hybrid vehicles. The bonuses can be for as much as $5000.

This may signal a trend that will spread as the idea catches on. In fact, Hyperion wants to share what it has learned with other companies who might want to start a similar program. More information can be found at www.hyperion.com/driveclean/.