Best Car Deals: July 2009
The message of a million commercials this month is easy to spot early: Give us your Oldsmobiles, your Monte Carlos, your rusty Broncos straining just to turn over in the morning...and walk away with a shiny new car at government expense!
You are bound to hear some enticing ads promising a lot on Uncle Sam's dime. The federal Car Allowance Rebate System (CARS) will offer Americans up to $4,500 toward the purchase of a new car when they turn in a less-efficient, older car. It officially launches July 23, but some dealerships will promise deals earlier.
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from U.S. News & World Report
» Best Used Car Deals » Cash for Clunkers |
Car dealers began preparing commercials based on the program when Congress first discussed the idea months ago. But, as with everything in the auto market, take the ads with a grain of salt.
You can, for instance, use your Cash for Clunkers trade-in as a down payment and take delivery of a new Smart Fortwo for just $99 a month for three years - but there will be a $6,667 balloon payment due at the end of those three years. July is a month for reading the fine print.
More likely, this month, you'll be able to negotiate a good deal on a good car by taking good care of your credit rating, negotiating respectfully with a dealer who is trying to survive a troubled market, and applying any cash-back rebates to the down payment to knock down what you owe before you even drive away.
As has been true all year, our survey of the best deals on the best cars in July includes a lot of well- built domestic cars that have seen their sales figures tumble as the companies that build them struggle in a recessed market. But June sales figures so far show signs of a rebound led by American automakers. Those sitting on the fence should note that stronger June sales figures, however, may mean that even the Big Three will be less motivated to offer great deals in August. July may be the best time to act.
And, of course, if you have a clunker that qualifies, you should plan to use it. The CARS program officially ends November 1, but Congress has allocated just $1 billion for the vouchers - an amount that could run out early.
For details on how to qualify for the government's program, see our Cash for Clunkers FAQ. Stay on top of the latest updates on the program with our Cash for Clunkers News page.
If you're looking for a car that's a great deal over the long haul, check out the 2009 U.S. News Best Cars for the Money Award winners.
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The Best Deals we found this month are listed below:
$1,500 cash back
With gas prices near their traditional summer peak, automakers aren't discounting their small cars much. But the Corolla, with great fuel economy, strong safety scores, and Toyota's strong reputation for dependability, is available at a discount in most parts of the country.
Note: The Corolla's combined EPA-estimated gas mileage is greater than 22 mpg, so it is eligible for the Cash for Clunkers rebate.
MSRP: $15,350 - $20,050
Invoice: $14,352 - $18,345
MPG: MPG: 26 (2009) City / 35 (2009) Hwy
0% APR financing for 60 months or $1,000 Cash Back
Conventional wisdom is changing. In our car rankings, which track the collective opinion of the automotive press, the top three midsize cars are all domestic, with the imports in a tangle starting at fourth place. This month, the best deal available on a good midsize car is Chevrolet's current offer on the Malibu. Chevy's midsize car features a sharp two-tone interior with a distinctively upscale feel. Powertrain options allow you to select anything from a thrifty fuel-sipper to a fairly sporty ride for a family car. This month, the Malibu is available interest-free for 60 months, or with $1,000 cash back.
Note: The Malibu's combined EPA-estimated gas mileage is greater than 22 mpg, so it is eligible for the Cash for Clunkers rebate.
MSRP: $21,605 - $26,880
Invoice: $20,417 - $25,402
MPG: 22 City / 30 Hwy
0% APR financing for 36 months or up to $2,000 cash back
It's not the old, midsize Taurus that everyone drove in the early ‘90s, nor is it the boring full-size Taurus Ford has sold for the last few years. The 2010 Ford Taurus is entirely new, and one of the most attractive full-size sedans on the market. With sharp looks and an interior that looks and feels more expensive than it is, the 2010 Taurus has won praise from the automotive press. The high-powered SHO edition even won Esquire magazine's Car of the Year award before the car even hit dealerships. But summer, with its high gas prices, is a tough time to debut a big car. So Ford is offering discounts on the Taurus, even in its first month on the market.
Note: For all models except the SHO, the Taurus' combined EPA-estimated gas mileage is greater than 22 mpg, so it is eligible for the Cash for Clunkers rebate.
MSRP: $25,995 to $31,995
MPG: TBA
0% financing for 60 months or up to $2,500 cash back
As automakers have shifted away from tough, truck-like SUVs toward curvier, more car-like crossovers, the Ford Escape has started to look out of date. But it isn't. An Insurance Institute for Highway Safety "Top Safety Pick," the Escape boasts better fuel-economy than many of its rivals, even if it looks more like a tough, truck-based ride. Ford's available SYNC system, which allows drivers to control iPods, cell phones and other Bluetooth devices through the car's stereo system with voice commands, is something no competitor can match.
Note: The Escape's combined EPA-estimated gas mileage is greater than 18 mpg, so it is eligible for the Cash for Clunkers rebate.
MSRP: $20,435 - $27,670
Invoice: $19,245 - $25,625
MPG: 20 City / 28 Hwy
0% APR financing for 60 months
The Traverse bridges the gap between a minivan and an SUV. Easy to drive and with three rows of seating, it's a comfortable family hauler - but it's useful for a trip to Home Depot as well. With the seats folded down, it has more cargo space than anything else in the midsize SUV segment. The Traverse also has more cargo space than most of its rivals with the seats up. And though it's big enough to carry eight, it has one of the best fuel economy ratings in the segment.
Note: The Traverse's combined EPA-estimated gas mileage is greater than 18 mpg, so it is eligible for the Cash for Clunkers rebate.
MSRP: $29,215 - $41,975
Invoice: $27,608 - $39,666
MPG: 17 City / 24 Hwy
0% APR Financing for 36 Months Plus $1,500 Cash Back
Perhaps the easiest to drive of the large SUVs, the CX-9 almost qualifies as car-like - but still carries seven adults. It isn't well-suited for some traditional big-SUV tasks like towing, but with a well-appointed cockpit and spirited driving dynamics, it's a better choice for many families. This month, it's available with interest-free financing AND a rebate, while most rivals only offer a financing deal OR a rebate.
Note: The combined EPA-estimated gas mileage of two-wheel-drive CX-9s is greater than 18 mpg, so they are eligible for the Cash for Clunkers rebate, though four-wheel-drive versions do not qualify.
MSRP: $29,820 - $35,205
Invoice: $27,600 - $32,567
MPG: 16 City / 22 Hwy
0% APR financing for 72 months or up to $2,500 cash back
The 2009 Chevrolet Silverado can move between serious work truck and comfortable daily driver with ease. New designs from Ford and Dodge may have won more press this year, but the Silverado is still the best choice for many buyers. A well-designed interior and comfortable handling combined with a strong tow rating and good hauling capacity make it a flexible investment. It's also a fairly inexpensive investment this month, available with interest-free financing for a period as long as six years.
Note: The Silverado is available in many configurations, but most have a combined fuel economy greater than 15 mpg, so many are eligible for the Cash for Clunkers rebate
MSRP: $19,375 - $41,355
Invoice: $18,503 - $38,253
MPG: 15 City / 20 Hwy
Up to $4,500 cash back
In its last year, the Cadillac XLR Convertible will be a minor footnote in automotive history, because it never caught on with the public. It should have. Essentially a Corvette with Cadillac's angular styling and a luxury-class passenger cabin, the XLR is a joy to drive. The high-performance XLR-V, which sprints from 0 to 60 in under five seconds and boasts outstanding handling thanks to Cadillac's unique Magnetic Ride Control system, is the best version of this car. The XLR won't be built for the 2010 model year, so the examples currently on dealership lots are the last of their line -- and they are available at a discount in July.
Note: The Cash for Clunkers rebate does not apply to cars in this price range.
MSRP: $104,215 - $104,215
Invoice: $92,230 - $92,230
MPG: 14 City / 23 Hwy
