Pickup Trucks

Saturn cars on sale

People shopping around for cars and auto loans should take notice: You might have an opportunity to get a brand new Saturn car for a used-car price. The same thing goes for Pontiacs.

General Motors is discontinuing both brands, so Pontiac and Saturn cars are basically going into fire sale mode now. I am still trying to understand exactly how this sale works, so perhaps someone out there who is more business savvy could leave a comment to fill in the missing information.

Incentives plus price slashing

First of all, GM says it will pay dealers “$ 7,000 for every new Saturn or Pontiac on their lot that is moved to rental-vehicle or service-vehicle fleets operated by the dealers,” says the Wall Street Journal. So, basically, GM will pay dealers to take ownership of the cars. That’s kind of odd. Right?

Then, dealers have to label them as “used” because the dealers are technically the first owner, not customers. Of course, most of the cars will not actually be used, and they’ll still have zero miles (or just test drive miles) on them.

A little help?

So, what am I missing here? It doesn’t make a lot of sense. Why doesn’t GM simply give a bonus for Pontiacs or Saturns sold? Why not just slash prices instead of going through the process of justifying and slapping a “used” label on there?

I’m still waiting for this to click. The brands are both being discontinued, so it can’t be for the purpose of maintaining value attached to the Pontiac and Saturn names. I’m at a loss. Let me know what you think.

The bottom line

Anyway, regardless of exactly what GM and its dealers are doing and why they are doing it, you could be able to buy Pontiac and Saturn cars for super cheap, so if you’re thinking about getting a new car sometime soon, you might want to set your plan in motion sooner rather than later.

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Technorati Tags: auto loans, cars, fire sale, general motors, gm, Pontiac, Saturn

General Motors, one of the largest car manufacturers in the world, has filed for bankruptcy with the American government. For as long as cars have been around, General Motors (GM) has been one of the three largest producers of cars in America and one of the largest in the world. Now the car industry is on its knees, and of the three biggest car manufacturers in America two have now been forced to seek protection from their creditors by declaring themsleves bankrupt. But what does all this mean to us?

Well, for UK consumers, the answer is probably not a lot. If you have a car that was made by GM, there’s no need to worry about the future of your car and any parts you may need, as the company is still in business and hasn’t ceased trading. With the financial protection of the US government, they hope to be through the worst of it in as little as three months. In addition GM Europe, which consists of the British brand Vauxhall and the German Opel, has already been sold off to a Canadian company who have said they will do all they can to protect the 5,500 UK jobs at stake.

For consumers looking to purchase a new car in times like these, it could well be that leasing or contract hire could be a better option than buying outright, as it gives you more freedom of choice and wouldn’t leave you in the lurch later if the manufacturer did go out of business. Certainly if you are worried about buying a car by one of the main manufacturers tied to one of the companies that is at risk such as Vauxhall or Ford, car leasing could put your mind at ease.

Whether you’re looking for a handy little car about town or a fancy new BMW, car leasing gives you a wider choice of vehicles including those that may otherwise have been out of your price range for buying outright. Your agreement takes into account your projected mileage and wear and tear, so your car won’t decrease its financial value over the course of the contract and at the end of your contract you can simply trade it in for the upgrade of your choice. With the car industry in such a state of disaster, it could be the best way to make sure you’re not affected by any future surprises!

For great deals on van leasing and van contract hire

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Technorati Tags: BMW car leasing, car leasing, contract hire, ford car leasing, general motors, gm, van contract hire, van leasing