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New GM Sale May Challenge Bargain Hunters

Multiple incentives make it hard to find the best price

By Joe Benton
ConsumerAffairs.com

November 20, 2007

But the GM plan will be difficult for consumers to navigate because part of the incentives will come from the automaker while price reductions may be offered by individual dealers, leaving no easy comparison from showroom to showroom.

The automaker is encouraging dealers to reduce prices on existing inventory while also providing the dealers incentives to sell 2008 models.

This means that successfully finding the best price on a GM vehicle will be time-consuming and tedious for new car and truck shoppers.

Calling the sales promotion a "Red Tag" sale, GM is offering no-interest loans for five years on all 2007 models of Chevrolet, Pontiac, Buick, GMC and Saturn until January 2.

Not included in the GM deal are the Chevrolet Corvette and the C-4500 series Chevrolet trucks and GMC trucks. Consumers must have good credit to qualify for the lowest rates.

Sales are down 6 percent this year at GM as the world's number one automaker grapples with competition from Asia, rising gas prices and a weak housing market that has stifled consumer confidence.

GM reported a record $39 billion quarterly loss earlier this month and the automaker's stock is down 20 percent since the company reported the loss.

As the year began, GM hope promised dealers they would be able to maintain a strategy of clearer pricing and lower incentives in a bid to increase profitability and boost the resale value of GM vehicles.

The promise faded as the year progressed. GM spent average of $3,118 in incentives to sell vehicles in October, according to Edmunds.com.

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