WASHINGTON — Auto manufacturers often use cash back or cheap financing to lure buyers to the lot, but incentives are at records right now, and it’s not uncommon to see a combination of both.
Some Labor Day weekend offers appear extremely generous.
Volkswagen is offering 0 percent five-year financing and $1,500 cash back on a Passat or Jetta. Ford is offering 0 percent financing for six years and $2,000 cash back on its Focus and Fiesta.
Lexus is offering cash back as high as $5,000 on some models, and BMW is offering 0.9 percent financing for six years on its 5-Series Sedan.
“Incentive spending is up by 9 percent year to date and really at an all-time high,” says Larry Dixon with the National Association of Automobile Dealers. “But why incentives are so good around the Labor Day holiday is because manufacturers need to make room for the incoming model units.”
Most of those big incentives are being applied to cars, not SUVs or pickups.
“Car demand is a bit softer than truck demand and discounts are higher on cars than they are on trucks, although there are certainly good deals to be found out there for trucks and utilities,” Dixon said.
Most major auto manufacturers reported weaker than expected August sales, reducing the likelihood that the auto industry will top last year’s record for U.S. sales.
Here’s a short list from NADA of some of this holiday weekend’s best manufacturer incentive offers:
- 2016 Volkswagen Jetta
Deal: 0 percent financing for 60 months, plus $1,500 cash back - 2016 Volkswagen Passat
Deal: 0 percent financing for 60 months, plus $1,500 cash back - 2016 Ford Focus
Deal: 0 percent financing for 72 months, plus $2,000 cash back - 2016 Ford Fiesta
Deal: 0 percent financing for 72 months, plus $2,000 cash back - 2016 Kia Optima
Deal: 0 percent financing for 66 months, plus $1000 bonus cash or $2,000 cash back - 2016 Hyundai Santa Fe
Deal: 0.9 percent financing for 60 months, plus $1,750 cash back - 2016 Lexus CT Hybrid
Deal: $3,500 cash back - 2016 Lexus ES
Deal: $3,500 cash back - 2016 Lexus GS Turbo
Deal: $5,000 cash back - 2016 Toyota Sienna
Deal: 0 percent financing for 60 months or $1,000 cash back - 2016 Lincoln MKX
Deal: 0 percent for 60 months, plus $1,000 cash back - 2016 Infiniti Q50
Deal: 0 percent financing for 36 months - 2016 BMW 5-Series Sedan
Deal: 0.9 percent financing for 72 months - 2016 Mazda CX-5
Deal: Lease $269 per month for 36 months with zero due at signing and zero first month’s payment