Best Car Deals: February 2010
The auto industry is once again dominating the headlines, and not in a good way. This time, however, the negative story might actually be masking some good news.
Yes, Toyota halted sales of eight popular models and launched a massive recall campaign due to a gas pedal defect that could, in theory, contribute to an accident (the automaker has since resumed sales on a case-by-case basis). But, while everyone was paying attention to that story, the auto industry quietly pulled a little further out of its recent slump.
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from U.S. News & World Report
» Best Lease Deals for February » What You Need to Know About Toyota's Pedal Recall |
January auto sales were up slightly from results just one year ago. Ford saw its sales jump by 25 percent. Upstart Hyundai saw its results grow by more than 50 percent. Even troubled Chrysler got a slight sales bump.
Toyota’s troubles may be making headlines, but rest of the industry is slowly crawling back.
While that might be great for car builders, it’s not necessarily good news for car shoppers. Through the economic downturn, we saw automakers present some of the steepest discounts they’d offered in decades. Now that foot traffic is slowly returning to dealerships, they’re pulling back on those heavy incentives. Car prices traditionally rise in January after a holiday low, but this year, the effect is made more dramatic by the end of many cash-back offers, and shorter terms available on low-interest loans.
There are still, however, good deals to be found. It’s important to shop carefully this month. Rather than across-the-board discounts on most cars, we’re now seeing a market where one car can be much less expensive than its competition -- thanks to certain automakers carrying more significant discount programs than their rivals. Below, we’ll highlight a few of the best.
And owners of those troubled Toyotas have more options than ever, as General Motors, Ford, Chrysler and even Hyundai are offering additional discounts for buyers trading in a Toyota product. Shoppers should be careful, though, that they don’t let the dealership get that money right back by offering a low price for a Toyota trade-in, due to the headlines. Experts say that Toyota products should take a short-term resale value hit, but they may recover their value if Toyota solves its gas pedal problem effectively.
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The Best Deals we found this month are listed below:
0% APR financing for 36 months plus no payments for 90 days
There are few attractive discounts on small cars this month, but this one stands out. Many auto reviewers say the Mazda3 is the most fun-to-drive option in the compact car class. Precise handling, a choice of two zippy four-cylinder engines and sharp brakes give it a sporty feel that’s hard to match in this price range. Reviewers love the supportive front seats, too. This month, you can buy a 3 with no interest, and no payments for 90 days. Few manufacturers are discounting their compact cars, so the Mazda may be your best opportunity to negotiate a good deal on a small car.
MSRP: $15,295 - $22,800
Avg. Paid: $15,196 - $22,297
MPG: 25 (Est) City / 33 (Est) Hwy
0% APR financing for up to 60 months
The Chevrolet Malibu has been overshadowed by the success of the remarkable 2010 Ford Fusion in recent press coverage, but the Ford’s cross-town rival is one you shouldn’t overlook. Its stylish two-tone interior is a great place to spend a commute. It’s sharp-looking outside, too, and has a comfortable, composed ride. And it’s easy to fit in a family budget. Unlike foreign rivals that offer their most luxurious trim levels only with thirsty V6 engines, it’s possible to buy a Malibu equipped to near-luxury status with a thrifty four-cylinder engine that you’ll be thankful for when gas prices rise. This month, the Malibu is offered with five years of interest-free payments, compared to just three years for the Ford. There are no zero-interest offers on imported midsize cars this month.
MSRP: $21,825 - $26,955
Avg. Paid: $21,772 - $26,713
MPG: 22 City / 30 Hwy
0% APR financing for up to 36 months plus $1,000 cash back rebate
At the recent Los Angeles Auto Show, the 2010 Ford Taurus was named International Car of the Year. The jury of automotive writers that awards the prize praised the Taurus for the way it “fosters an emotional connection” with its driver. How many big family sedans has anyone ever said that about? When it comes to the all-new Taurus, however, we get it. The car has rakish good looks, at once both powerful and refined (one critic called it “a linebacker in a tailored suit”). It boasts one of the most stylish interiors in its class, and available All-Wheel-Drive -- something few rivals can claim. The high-performance, twin-turbo Taurus SHO version is even stealing some sales from luxury sedans. Those who lived through the late ‘80’s may not think of a Taurus as a rival to an Audi or a BMW, but trust us…drive one and it starts to make sense. This month, Ford won’t make you choose between low-rate financing and cash back. They’re offering both.
MSRP: $25,170 - $33,620
Avg. Paid: $24,890 - $33,062
MPG: 18 (Est) City / 28 (Est) Hwy
0% APR financing for 36 months, plus $1,000 cash back for returning Mitsubishi customers
The Mitsubishi Outlander wasn’t entirely redesigned for 2010, but the car has been updated so drastically that it seems like an all-new model. The Outlander stands out with a bold new look and sporty handling. Its ten-year/100,000-mile warranty stands out, too, in a class where three years is typical. The Outlander is also one of the few compact SUVs that can seat seven, though reviewers say the third row isn’t comfortable enough to use often. This month, it’s available interest-free. Returning Mitsubishi owners qualify for an additional $1,000 rebate.
MSRP: $20,840 - $29,250
Avg. Paid: $20,472 - $28,490
MPG: 20 City / 25 Hwy
0% APR financing for 36 months, or up to $2,500 cash back
The Ford Flex offers a lot of utility in a stylish package. With minivan-like interior space, comfortable seating for seven, and a long list of standard features, it’s a great fit for families. But distinctive retro-styling gives it a feel of actual cool – something no minivan can match. This month, most automakers have pulled back drastically on SUV incentives, but Ford is still offering either an interest-free financing deal or a cash-back rebate on the Flex.
MSRP: $28,550 - $42,065
Avg. Paid: $28,017 - $41,012
MPG: 17 (Est) City / 24 (Est) Hwy
0% APR financing for up to 72 months
Automakers succeeded in selling off most of their leftover 2009 models with fire sale prices in December, but GM still has thousands of 2009 Tahoes remaining. They’re among the best large SUVs available. The seats are road-trip comfortable, and the big ‘ute handles much smaller than it looks. There’s no such thing as a fuel-efficient large SUV, but the Tahoe is actually thriftier than its GMC Yukon cousin, the Jeep Commander or the Nissan Armada. This month, Chevrolet will sell you a 2009 Tahoe with six years of interest-free payments. Don’t get talked into the 2010 edition, however. It’s virtually identical, but this discount doesn’t apply to it.
MSRP: $37,280 - $53,615
Avg. Paid: $36,379 - $52,048
MPG: 14 (2009) City / 20 (2009) Hwy
0% APR financing for 36 months plus $500 cash back, or up to $3,000 cash back
Though automakers aren’t discounting most of their cars much this month, pickups are a different story – it’s still fairly easy to get a great deal on a full-size truck. Most of the big trucks are still offered with significant incentives. Still, we don’t have a hard time finding one to recommend. When 2009 sales figures were tallied, the Ford F-150 claimed the title of best selling vehicle in America – for the 28th consecutive year. It’s an incredible reign, but it makes sense. The F-150 balances tough and comfortable, with a tow rating as high as 11,300 pounds (with the available 5.4-liter V8) and a comfortable, technology-laden interior. In January, buyers can choose between a hefty cash-back rebate or a low-rate financing offer with a little cash back thrown in.
MSRP: $21,380 - $45,835
Avg. Paid: $20,772 - $43,721
MPG: 15 (Est) City / 19 (Est) Hwy
$4,500 cash back rebate
The Mazda Miata is the roadster stripped to its essence. The spiritual heir to generations of top-down speedsters, it’s known for amazing agility. You’d have to spend tens of thousands more to find another car with handling this crisp. It also provides ample acceleration without the need for a big, thirsty V8. The Miata gets it done with its light weight. Its interior is surprisingly upscale for an affordable sports car – and it’s particularly elegant in brown leather. But in a recession, Americans don’t buy roadsters. Mazda still has thousands of 2009 MX-5s to sell. They’re trying to clear out the last of the line with one of the largest cash-back offers available this month.
MSRP: $22,810 - $29,350
Avg. Paid: $21,774 - $27,832
MPG: 22 (Est) City / 28 (Est) Hwy
