New Car Deals for January 2010

       Iguida.com highlights the best new car deals of the month in 11 vehicle categories, including Hybrids, compact cars, midsize cars, and SUVS. These top deals are based on the automakers’ current sales incentives.

Generally, three types of incentives apply:

• CONSUMER CASH REBATES: Our top consideration is always given to consumer cash rebates. This is cash paid by the manufacturer to you. You can accept the rebate in the form of a check after the sale, but most people treat it as a part of the negotiating process. For example, Hyundai is offering a $2,000 cash incentive on its 2009 Elantra compact car. As you negotiate the price of the new car, you can apply the $2,000 directly to your down payment to reduce the amount you’re financing. Or you can tell the dealer to deduct it from the vehicle’s transaction price in a cash sale. Note that when we list consumer rebates as being “up to” a certain amount, this represents a combination of offers the manufacturer may be putting on the table. And be aware that we don’t include group-specific incentives, such as rebates for military personnel or recent college graduates, and we don’t include customer-loyalty incentives.

• MARKETING SUPPORT: Our second consideration is direct-to-dealer marketing support from the manufacturer. These are sometimes called “dealer support” or “secret rebates” because they’re rarely publicized and the dealer doesn’t always pass the rebate on to an uninformed car buyer. For example, Mercedes-Benz is offering $14,000 marketing support on its 2009 S550 sedan. Indeed, these incentives are often used by luxury automakers to help their dealers move slow-selling models without “cheapening” the brand by advertising a rebate or cutting the retail price. There’s no guarantee the entire amount of the incentive will be passed along to a consumer. But knowing such an incentive is in effect can give you an advantage when you negotiate the transaction price on a given model.

• LOW-RATE FINANCING: Our third consideration is low-rate financing offered to buyers by an automaker’s so-called captive-financing divisions. These incentives can be as low as zero percent interest on a loan and can include loans as long as 72 months. On its 2009 Cobalt compact car, for example, Chevrolet is cash offering up to $1,500 cash and 1.9%-4.9% financing to 72 months. While they can save you thousands of dollars over the term of the loan -- particularly if you’re buying an expensive car -- the lowest interest rates typically are limited to buyers with spotless credit records. And you should always check with other lenders – banks, your credit union -- to see how their rates compare with the automaker’s low-rate financing. Finally, note that the incentive may also involve a cash rebate in lieu of discounted financing. In the 2009 Cobalt example, Chevy is also offering the alternative of a customer-cash rebate of up to $3,000. Be sure to run the numbers both ways to see which will ultimately result in the better deal for you.

     Whether supplies are dwindling or demand is creeping upward with the price of gasoline, we had a difficult time finding substantial incentives on hybrid gas/electric powered models this month. The best we could come up with were on 2009 models, many of which (like the Chevrolet Malibu, Chrysler Aspen, and Dodge Durango) have since been discontinued.

Here are the Best New Car Deals on Hybrids for January 2010:

• 2009 Chrysler Aspen Hybrid: $4,500 marketing support.
• 2009 Dodge Durango Hybrid: $4,500 marketing support.
• 2009 Chevrolet Malibu Hybrid: $2,500 cash or 0.0% financing to 72 months and $500 marketing support.
• 2009 Chevrolet Silverado Hybrid: 0.0% financing to 72 months.
• 2009 Chevrolet Tahoe/GMC Yukon Hybrid: 0.0% financing to 72 months.

     Between last summer’s successful Cash for Clunkers program, automakers’ year-end sales, and rising demand for the smallest and most efficient models, here’s another segment in which substantial cash rebates have all but evaporated. We did manage to isolate a couple of decent deals, however.

Here are the Best Deals on Subcompact Cars for January 2010:

• 2009 Hyundai Accent: up to $3,500 cash. 2010 models: up to $2,000 cash.
• 2009 Chevrolet Aveo: $1,500 cash or 0.0% financing to 72 months.
• 2009 Kia Rio $1,500 cash. 2010 models: $500 cash.
• 2009 Nissan Versa 1.8: $1,250 cash or 2010 models: $750 cash or 1.9% financing to 60 months.
• 2009/2010 Honda Fit: $500 marketing support.

     While remaining 2009 inventory still gets the biggest spiffs, there are some sizeable cash rebates being offered in the compact class for current models. In this economy, compacts are serving both entry-level buyers and cost-minded commuters for their reasonable sticker prices and cash-saving fuel economy.

Here are the Best Deals on Compact Cars for January 2010:

• 2009 Hyundai Elantra: up to $4,000 cash. 2010 models: up to $3,000 cash.
• 2009 Chevrolet Cobalt: $3,000 cash or 0.0% financing to 72 months. 2010 model: $2,000 cash or 2.9% financing to 60 months, 4.9% to 72 months.
• 2009 Kia Spectra: $3,000 cash.
• 2010 Chrysler PT Cruiser: $2,000 cash or 0.0% financing to 36 months, 1.9% to 60 months, 3.9% to 72 months and $1,000 marketing incentive.
• 2009 Nissan Sentra: $2,000 cash or 0.0% financing to 60 months, 1.9% to 72 months; 2010 sedan: $1,000 cash or 0.0% financing to 60 mo, 2.9% to 72 months.

     If you’re willing to settle for a 2009 version you’ll find generous manufacturers’ discounts on some desirable family-friendly midsize models. We isolated a few good deals on current 2010 models as well.

Here are the Best Deals on Midsize Cars for January 2010:

• 2009 Buick LaCrosse: $4,000 cash or 0.0% financing to 72 months.
• 2009 Mitsubishi Galant: $3,500 cash or 0.0% financing to 48 months, .9% to 60 months, 1.9% to 72 months.
• 2009 Kia Optima: $3,000 cash. 2010 models: $1,000 cash.
• 2009 Hyundai Sonata: $3,000 cash. 2010 model: $2,500 cash.
• 2009 Chevrolet Malibu: $2,500 or 0.0% financing to 72 months. 2010 model: $2,000 cash or 0.0% financing to 60 months, 3.9% to 72 months.

     It seems only fair that the biggest models get the biggest rebates among passenger cars. Unfortunately, buyers are choosing from what is a relatively small fleet of large non-luxury sedans, which tends to make incentives in this segment few and far between.

Here are the Best Deals on Full-Size Cars for January 2010:

• 2009 Buick Lucerne: $4,500 cash or 0.0% financing to 72 months; 2010 models: $2,000 cash or 2.9% financing to 60 months, 4.9 % to 72 months.
• 2009 Chevrolet Impala: $3,500 cash or 0.0% financing to 72 months; 2010 models: $2,000 cash or 2.9% financing to 60 months, 4.9 % to 72 months.
• 2010 Chrysler 300: up to $4,500 cash or 0.0% financing to 60 months, 1.9% to 72 months.
• 2009 Dodge Charger: $3,000 cash or 0.0% financing to 60 months, 1.9% to 72 months.

     It’s somewhat awkward to be a company owner or manager who drives up to the employee entrance in a new luxury car at a time when layoffs and pay cuts are still prevalent. Thus it’s no surprise slow-selling upscale models are being promoted with big-time cash rebates. Cadillacs seem to the bet bets for well-heeled bargain hunters this month.

Here are the Best Deals on Premium Cars for January 2010:

• 2009 Cadillac XLR/XLR-V: up to $14,000 cash or $0.0% financing to 72 months.
• 2009 Cadillac CTS-V: up to $9,000 cash or 0.0% financing to 72 months; 2010 model up to $3,000 cash. Other 2009 CTS models up to $7,000 cash or 0.0% financing to 72 months; 2010 models: up to $3,000 cash or 1.9% financing to 36 months, 3.9% to 72 months.
• 2009 Saab 9-3: up to $9,000 cash or 0.0% financing to 72 months.
• 2009 Saab 9-5: up to $9,000 cash or 0.0% financing to 72 months.
• 2009 Cadillac DTS: up to $9,000 cash or 0.0% financing to 72 months. 2010 models: up to $4,500 cash or 1.9% financing to 36 months, 3.9% to 72 months.

     You’d expect a wider range of deals on sun-loving sports cars in the dead of winter, but we did manage to eke out a few bargains including, for the first time on our list, the venerable Mazda MX-5 Miata (albeit closeout 2009 models).

Here are the Best Deals on Sporty Cars for January 2010:

• 2009 Mazda RX-8: $5,000 cash or 2.9% financing to 60 months, 4.9% to 72 months; 2010 model: 3.9% to 60 months, 4.9% to 72 months.
• 2009 Mazda MX-5 Miata: $4,500 cash.
• 2009 Chevrolet Corvette (except ZR1): $4,000 cash or 0.0% financing to 72 months.
• 2009 Ford Mustang: up to $4,000 cash or 0.0% financing to 36 months, 1.9% to 48 months, 2.9 % to 60 months, 4.9% to 72 months. 2010 models: up to $1,500 cash or 0.0% financing to 36 months, 0.9% to 48 months, 1.9% to 60 months, 3.9% to 72 months.
• 2009 Mitsubishi Eclipse: $2,000 cash or 0.0% financing to 48 months, 1.9% to 60 months, 3.9% to 72 months.

     With the economy yet to roar and the construction sector in the doldrums, pickup-truck sales continue to wilt. That triggers substantial sales incentives to help dealers move what used to be their most profitable models. Deals on outgoing 2009 model-year pickups are particularly juicy.

Here are the Best Deals on Pickup Trucks for January 2010:

• 2009 Ford F150: up to $6,500 cash or 0.0% financing to 60 months, 1.9% to 72 months. 2010 models: up to $4,000 cash or 0.0% financing to 36 months, 3.9% to 48 months, 4.9% to 60 months, 6.9% to 72 months.
• 2009/2010 Nissan Titan: $5,000 cash or 0.0% financing to 60 months, 1.9% to 72 months.
• 2010 Dodge Ram: up to $4,000 cash or 0.0% financing to 36 months, 2.9% to 60 months, 4.9% to 72 months.
• 2009 Chevrolet Silverado 1500: $3,500 cash or 0.0% financing to 72 months. 2010 Models: $2,000 cash or 3.9% financing to 60 months, 5.9% to 72 months.
• 2009 GMC Sierra 1500: $3,500 cash or 0.0% financing to 72 months. 2010 Models: $2,000 cash or 3.9% financing to 60 months, 5.9% to 72 months.

     It’s a shrinking automotive segment but automakers must be keeping their minivan inventories in check because this is one of the leanest categories for sales incentives in the industry this month. Two notes, though: Toyota is offering incentives on the 2010 Sienna to help dealers clear the way for the redesigned 2011 model; and we’ve included Ford’s new commercial-delivery Transit Connect truck in this group because it’s, well, mini and it’s a van.

Here are the Best Deals on Minivans for January 2010:

• 2009 Nissan Quest: $3,000 cash or 0.0% financing to 60 months, 2.9% to 72 months.
• 2010 Dodge Grand Caravan: up to $2,750 cash or 0.0% financing to 60 months, 1.9% to 72 months.
• 2010 Chrysler Town & Country: up to $2,000 cash or 0.0% financing to 60 months, 1.9% to 72 months.
• 2010 Ford Transit Connect $500 cash or 4.9% financing to 36 months, 5.9% to 48 months, 6.9% to 60 months, 8.9% to 72 months
• 2010 Toyota Sienna: $1,000 cash or 1.9% financing to 36 months, 2.9% to 60 months.

     Customer cash is king when it comes to selling large truck-based SUVs these days, as evidenced by this month’s incentives. If you can afford to fill the gas tank of a huge and thirsty V-8-powered truck you’ll find some great deals in this segment.

Here are the Best Deals on Sport-Utility Vehicles for January 2010:

• 2009 Cadillac Escalade: up to $10,000 cash or 0.0% financing to 72 months; 2010 models: up to $5,000 cash or 1.9% financing to 36 months; 2.9% to 48 months, 3.9% to 60 months, 4.9% to 72 months.
• 2009 Saab 9-7x: up to $9,000 cash or 0.0% financing to 72 months.
• 2009 Lincoln Navigator: up to $6,500 cash or 0.0% financing to 60 months, 1.9% to 72 months. 2010 models: up to $4,000 cash or 0.0% financing to 60 months, 1.9% to 72 months.
• 2009 Hummer H3: $6,000 cash or 0.0% financing to 60 months, 3,9% to 72 months. 2010 models: $3,000 marketing support and 6.9% financing to 60 months.
• 2010 Infiniti QX56: $6,000 marketing support and 0.0% financing to 36 months, .9% to 60 months, 2.9% to 72 months.

     Crossover SUVs are built on car-based platforms for a smoother ride and better handling than traditional truck-based SUVs, albeit at the expense of less towing capacity and limited off-road use. They’ve become far more popular than their trucky counterparts, but competition is stiff and crossovers are attracting big-time cash rebates to help move the metal. Note the inclusion of our first 2011 model, the just-redesigned 2011 Kia Sorento.

Here are the Best Deals on Crossover SUVs for January 2010:

• 2009 Cadillac SRX: up to $8,000 cash or 0.0 % financing to 72 months.
• 2010 Infiniti FX50: $5,000 marketing support (FX35 $4,000 marketing support) and 0.0% financing to 36 months, .9% to 60 months, 2.9% to 72 months.
• 2009 BMW xDrive 48i: $5,500 marketing support; xDrive 30i: $4,500 marketing support. 2009/2010 BMW x5 xDrive35d: $4,500 cash.
• 2009 Kia Sorento: $5,000 cash. 2011 models: $1,000.
• 2009 Ford Edge: up to $4,000 cash or 0.0% financing to 60 months, 1.9% to 72 months. 2010 models: up to $3,000 cash or 0.0% financing to 60 months, 1.9% to 72 months.