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Just noticed something over the past few days concerning auto commercials on the tube. It seems every car commercial I see is offering huge rebates and "0% financing forever".

It would be nice to see Honda offer such a nice deal for us loyal Hondaites. However......it's just an obvious fact that Honda doesn't need to offer such outrageous offers ;) since they build darn fine autos.

Just an observation on the state of matters in the auto industry in general :17: :5: :4:
 

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I have always thought the same. Howerver, I don't recall Honda offering anything less than 1.9%, and that was a year-or-two ago. In addition, I have never seen Honda offering cash back, until now. Looks like Accords and Civics are getting pretty hard to move.
 

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There is a glut of excess new inventory out there. It not just Honda. They are all offering low financing, money back, special leases we'll take your problem child , etc. to move inventory.

I have tried to do my part since Sept. 11. I spent more money than planned on Christmas. Bought electronics. I bought a new fishing boat in early April. Just bought the Pilot. Will buy some carpeting for the house in the fall. I will keep spending and will do my part for the economy.

#09131 SS EX
 

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:D I love that Honda does not offer "CASH BACK" rebates or rediculously low APR's on financing. I do wish they had a Honda loyalty plan.

My wife had a loyalty lease with her '99 Accord Sedan after she finished the lease on her '97 Accord. They waived the Security Deposit and offered 15k miles for the same monthly payment as a 12k mile lease. Very sweet!;) :D

After that lease, we went to straight financing. Honda finance has decent rates.:p
 

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I'm no Alan Greenspan, but I think this was forseeable. Last year, all those amazing deals (particularly by domestics) were essentially "borrowing" sales from the current year. People who normally would have waited another year or so to buy, jumped at the 0% deals. This gave the car mfgs good #'s as the economy slowed. As the economy has yet to rebound, one would assume that there now is a lack of buyers (as they have already bought) resulting in the excess supply.
 

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Big three are screwed

They are trapped. They offer 0% post-9/11 and lots of people buy cars. They realize that they are not making any money so the start to stop offering 0%. Sales plummet. They realize that they cannot sell cars without 0% financing. Everyone expects it now. They all reinstate it this month because their sales really stink. Now they are selling cars again and not making any money.

They don't get their financing for free to buy the inventory but they give them away and get nothing in return. Margins are very slim. They got themselves in a nasty rut and cannot get out of it.

Also, selling all these cars now means no one will need them for 2-4 years down the road. The glut continues. Time to sell your F, GM and DCX shares!
 
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