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.