Are Seattle Car Dealers Getting Desperate?

“I got my Civic at $100 over invoice!” beams Leonard L., a Redmond resident who picked up a new 2009 Honda Civic earlier this year. Leonard is among the growing group of recent car buyers who have snagged up great deals as local Seattle car dealerships have begun feeling the economic recession.

Read more

Updated! Great Deals for Seattle Car Buyers

If you’re looking to buy a car sometime soon, here are some deals to consider. Be warned many dealers will make up for these savings by trying to sell you other items you may not need. Luxury items and options in the finance office such as sealant or warranties are classic examples.

Don’t forget to take a look at some of the protection incentives from Ford and GM. These will essentially pay your monthly car payment if you lose your job. Be aware that each car maker has different rules for their plans, such as owning the vehicle for a few months before it actually kicks in.

If you don’t like the dealership experience, check out the SeattleAuto.net buying service, as we have teamed up with a customer focused auto buyer. Email cam@seattleauto.net with the make, model, year, and color you are looking for. The more specific you are the better help we can give you. We can find essentially any new/used car at a great price and you won’t have to step foot into a dealership.

Here are some great deals that will come to an end this month.

Buick, GMC,
Cadillac,Chevrolet,
HUMMER, Pontiac,
Saturn, Saab- 0%  APR financing for up to 60 months on many models.  New GM Total Confidence Plan includes payment protection, some protection against negative equity.  Expires: 4/30/09

Ford- 0 % APR  financing for up to 60 months, plus rebates up to $5000 on many 2009s, plus payment protection under new Ford Advantage Plan- Expires: 6/30/09

Toyota- Many models have 0% financing and cash back offers. However deals vary depending on region. Cash back rebates can reach up to $4000 on certain models- Expires: 4/30/09

Mazda- 0 – 0.9% APR financing for 36 months, can also be combined for cash back offers on certain models- Expires: 4/30/09

BMW- 0.9% APR financing (up to 60 months), plus no payments for 60 days on most 2009 models Expires:  5/31/09

Chrysler, Dodge, Jeep- Employee Pricing Plus Plus sale – 0 % APR financing for 36 months, plus employee pricing discounts, plus cash back offers varying by model

Volkswagen-0% APR financing (60 months) on 2009 Passat Wagon, Routan, and Toureg 3.9% APR financing on most models- Expires: 4/30/09

 

The Big Automakers Take a Hit, Subaru Shines!

Reminiscent of an Oklahoma City Thunder game, the numbers were just plain brutal and ugly. 2008 auto sales were at their lowest in over a decade. Even old reliables like Toyota and Honda couldn’t escape the bad economy and lack of consumer confidence.

All of the major US and Japanese auto makers finished the year with a thud, a very quite thud. The only company to offer a little sunshine was Subaru. The Japanese based company was the only one to see a positive increase in December sales.

According to an Associated Press article Chrysler sold 30 percent fewer cars in 2008. Ford sales numbers were down 21 percent than the previous year. While Toyota dropped 16 percent and Honda was also down at 8 percent in overall 2008 sales. The only major automaker who saw positive gains in 2008 was Japanese company Subaru.  Subaru sales went up 0.3 percent, not a lot of gain, but an improvement non the less. Buyers flocked to top selling models like the Forester and Impreza.

What’s all those sales numbers mean for Seattle drivers? Maybe more deals to be had, and maybe more Foresters and Imprezas on the road. Subaru could end up being the unofficial car of Seattle – just don’t forget the canopy.

Al Gore on Auto Bailout: We Gave then $1 Billion 15 Years Ago and They Walked Away

In a recent Newsweek interview with Al Gore, here’s a telling quote on what US automakers have really thought about clean and efficient cars this whole time: Read more

Why Toyota Wins From the Auto Crisis

From a blog posting I just read:

Do you know how many hourly jobs GM has laid off from 2006 to July 2008? Take a guess. How about 34,000? And now, they’re talking about another 5,500 layoffs.

…

OK, here’s a better question. How many hourly jobs has Toyota’s American production system laid off in the same time frame? Zero. That’s right. ZERO. How? Isn’t Toyota experiencing the same slow down in auto sales as GM is? Yes, it is. And yes, Toyota has halted production at its Texas and Indiana plants for the past 3 months. But the 4,500 people who work at those plants have not been laid off. 

 

The answer: Toyota has a special culture, deep-rooted values, and respect for their workforce. Toyota’s tradition is to NOT lay off employees during hard times. This tradition hasn’t really been put to the test until now. And Toyota has stuck to its guns and its values.

“This was the first chance we’ve really had to live out our values,” says Latondra Newton, general manager of Toyota’s Team Member Development Center in Erlanger, Ky. “We’re not just keeping people on the payroll because we’re nice. At the end of all this, our hope is that we’ll end up with a more skilled North American workforce.”

 

For the full article: What Toyota knows that GM doesn’t

My thoughts on this is two fold. First, I’m impressed with Toyota as a consumer. Second, I’m sentimental to the fact that this really is the end of the American car industry. 

Back in the 80s, when America stopped importing “cheap” Japanese cars and Lee Iacocca was making history at Chrysler, the American car industry seemed pretty much unstoppable. The “Big Three” were called that because they were actually the biggest – not because they are the only ones left standing – as is the case today. 

Through mergers and acquisitions, the industry, even with all it’s clashes with the union, the auto industry had the history of supporting it’s workers and ensuring a career out of tens of thousands of skilled laborers at a time that many corporations dumped their workers en masse. 

But that was then and this is now. 

In a surreal flip, it would now appear that those clunky Japanese car companies are the industry leaders today; and have been for more than a decade. While Detroit was drinking the oil-is-forever koolaid and pumping out beefier and bigger engines, the Japanese were hard at work perfecting their engines and builds to six-sigma and improving efficiency.

With gas hitting $4 a few months ago and the credit crisis, it wasn’t so much that the Japanese won the bet, but rather, Detroit found itself with an empty hand. Saddled with factories meant to churn out beefy SUVs, Hummers and trucks, the new paradigm in energy and economics poured cold water all over the roaring party up until this point. 

GM is losing a billion dollars a month and will likely buy out Chrysler. Layoffs in the 30,000 – 40,000 range are to be expected, along with 12 factories closing. Morale is no doubt at an all time low, with every worker wondering if he’s next on the cutting block. Even if GM is able to magically survive with an infusion of cash (bailout), the Volt is still years out and a grasp for straws.

Meanwhile, Toyota has taken a page straight out of the American automaker book by proving its loyalty to the company workforce. Though Toyota is halted on much of its production, they are taking the down time to train their workers to be even better skilled, educated and efficient workers. When the economy picks up again, Toyota will be the equivalent of a fully rested team going to the playoffs against a miserable and beat-up team that has just played 10 losing games in a row. It’s no contest who will win. 

If the Seattle Auto Show was any indication, the consumers have already voted, as we saw crowds around Toyota, Honda and Jetta. All the while, the sprawling 2-ton Ford F150 rotating 360 degrees might as well been invisible. Chevy and Escalade Hybrids were looked on more with a sense of derision or perplexed bewilderment rather than consumer curiosity (though this is Seattle). 

The new automotive landscape is already here – it’s just across the sea. 

 

Mini Vans, a Dying Breed

dThe classic mini van is going the way of the dinosaur and free coffee at a rest stop, they are dying out. While these larger family vehicles will never truly go extinct, they are harder to find in auto show rooms across the country. Read more

Observations from the 2009 Seattle Auto Show

Beauties like this Lamborghini Gallardo are one of the many reasons why people go to auto shows. The guys behind the Seattle Auto Show knows this, which is why they his the crowds right out off the bat with the big toys. Read more

Differences Between the Soccer Mom and Yoga Mom Vehicles

The word itself, “soccer mom”, usually conjures up negative connotations of someone with the huge gas guzzling van or SUV with honor roll stickers on the outside, and kids screaming on the inside. But that type of mother has evolved.

Enter the Yoga Mom.

Read more

The Demise of American Automakers – Part 1

It’s a sad day for American automakers when the makers of Hot Wheels is worth more than the largest automakers in America. In earnings releases, General Motors shares have gone from bad to worse, as investors flee from a company that is operating at an average loss of $1 billion dollars per month. Read more