Tweet
http://apnews.myway.com/article/20090217/D96DJ4080.html
The story of the day on auto bailout requests.
I have noted while shopping full size pickups that rebates on 2008 models from GM are about half what they were 2 months ago, when bailouts were more iffy. I priced a Dodge Ram and again rebates are far smaller than just a couple of months back. Normally the further it gets into the next model year the more desperate they are to move them and the larger the rebates and incentives become.
Meanwhile Toyota Tundra rebates have actually increased some and now a comparably equipped Tundra costs a couple thousand LESS than a Domestic '08, as opposed to the opposite condition 2-3 months back, where Toyotas typically drew a small premium over their domestic rivals in real-world pricing.
Ford has apparently managed to move most '08 trucks used for work (V8 reg cab and extended cab models) leaving only "lifestyle trucks" (supercabs with short 5.5' beds that are now out of favor as family haulers) and a handful of V6 reg cabs on lots at discounted prices. So again they seem to be managing things better than GM or Chrysler.
Is this because Toyota cannot rely on bailout money and is more motivated to move inventory while the big 3 now feel they can live off bailout money a while longer and aren't in a hurry to move the '08 models out just to get cashflow? It sounds like this is just the beginning of the market distortions we can look forward to in the era of the big bailout.
The story of the day on auto bailout requests.
I have noted while shopping full size pickups that rebates on 2008 models from GM are about half what they were 2 months ago, when bailouts were more iffy. I priced a Dodge Ram and again rebates are far smaller than just a couple of months back. Normally the further it gets into the next model year the more desperate they are to move them and the larger the rebates and incentives become.
Meanwhile Toyota Tundra rebates have actually increased some and now a comparably equipped Tundra costs a couple thousand LESS than a Domestic '08, as opposed to the opposite condition 2-3 months back, where Toyotas typically drew a small premium over their domestic rivals in real-world pricing.
Ford has apparently managed to move most '08 trucks used for work (V8 reg cab and extended cab models) leaving only "lifestyle trucks" (supercabs with short 5.5' beds that are now out of favor as family haulers) and a handful of V6 reg cabs on lots at discounted prices. So again they seem to be managing things better than GM or Chrysler.
Is this because Toyota cannot rely on bailout money and is more motivated to move inventory while the big 3 now feel they can live off bailout money a while longer and aren't in a hurry to move the '08 models out just to get cashflow? It sounds like this is just the beginning of the market distortions we can look forward to in the era of the big bailout.