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Automakers and dealers are starting to offer discounts, low-interest loans and other incentives to attract buyers as the origin of cars increases.
By Neal E. Boudette
For at least the past four years, automakers and their dealers had so few cars to sell (and demanded so many better) that they could simply ask for price caps. Those days are over and the deep discounts are returning.
During the coronavirus pandemic, auto production slowed first due to factory closures and then due to a global shortage of chips for PCs and other portions that lasted for years.
With few cars in showrooms, automakers and dealers eliminated maximum sales incentives, leaving consumers to pay full price. Some dealerships added thousands of dollars to the manufacturer’s recommended retail price, and other people began buying and reselling cars that were in the best selling condition. to make a profit.
But with chip materials returning to healthy levels, auto production has rebounded and middleman inventories are emerging. At the same time, emerging interest rates have reduced demand for vehicles. As a result, many automakers are struggling to sell.
Wes Lutz, owner of Extreme Dodge in Jackson, Michigan, said he owns several Dodge Challengers and Chargers eligible for $11,000 rebates from Stellantis, the maker of the Dodge, Chrysler, Jeep and Ram models. The automaker also offers rebates of up to $3,600 on versions of the Dodge Durango gaming app vehicle.
“It looks like we would possibly go back to incentives and overproduction,” Lutz said. “It hasn’t gotten to that point yet, but it’s getting closer. »
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