Car Makers Lavish Incentives on SUV and Truck Buyers

Soccer moms and cargo haulers rejoice. Buying a new gas guzzler while the price for regular unleaded creeps above $4 a gallon may not be the crazy, cash-wasting move it seems.

Skyrocketing gas prices scared off many would-be buyers of SUVs, trucks, minivans and other large vehicles over the past year. Now auto makers are trying to lure them back onto car dealers' lots by offering head-turning cash incentives — some as high as $8,000 — on these now-notorious gas guzzlers.

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Call it an act of desperation. Sales of SUVs and light trucks fell 24% since last May, while heavy truck sales are down 30%, according to Autodata Corp., a New Jersey-based market researcher. (The situation is so dire that both Ford and General Motors are temporarily shuttering some plants that make SUVs and trucks.) During the same time, manufacturer incentives were up 5% year over year, according to Edmunds.com. Today, average incentives for large trucks total $4,667; for large SUVs, $4,603.

"Dealerships have a lot of money tied up in these vehicles," says Jack Nerad, executive editorial director for Kelley Blue Book. "They don't want them sitting on the lot."

Cash isn't the only lure they're using, however. Auto makers are also throwing in generous financing offers with low rates and extended repayment periods, says Jessica Caldwell, an industry analyst for Edmunds.com. One catch: You need stellar credit to qualify for, say, the 0% financing over 36 months that Volvo's offering on its XC90 (see chart below for more current offers). Since most of these financing promotions can't be combined with cash incentive offers, make sure to crunch the numbers to see which deal is best.

Should you bite? Yes, but only if the vehicle makes a better fit for your driving needs than a more compact, fuel-efficient model, says Nerad. "Someone shopping for these kinds of cars has serious carrying need in people or cargo, so a Toyota Prius just isn't going to cut it," he says, "and a $5,000 cash incentive buys a whole lot of gas."

Other factors to consider: how much you drive each month and whether you still owe money on your existing car.

Here are some of the biggest incentives currently on the market:

Current Auto Incentives on 2008 Models
Brand/Model	Total Incentives	Details
Chrysler Aspen	$4,900	$4,500 customer cash*, plus $400 dealer cash**, which cannot be combined with promotional financing or the auto maker's "Let's Refuel America" gas promotion. Good through June 30.
Chevrolet Silverado	$6,500	$5,000 dealer cash, plus $1,500 customer cash, which cannot be combined with promotional financing. Good through June 30.
Dodge Durango	$4,900	$4,500 customer cash, plus $400 dealer cash, which cannot be combined with promotional financing or "Let's Refuel America" promotion. Good through June 30.
Dodge Ram Pickup 1500	$7,900	$5,000 customer cash, plus $2,500 regional customer cash and $400 dealer cash, none of which can be combined with promotional financing or "Let's Refuel America.". Good through June 30.
Ford F-450	$5,500	$5,000 customer cash plus $500 dealer cash, which cannot be combined with promotional financing. Good through June 30.
GMC Sierra	$6,500	$5,000 dealer cash, plus $1,500 customer cash, which cannot be combined with promotional financing. Good through June 30.
Hummer H3	$5,000	$5,000 customer cash, which cannot be combined with promotional financing. Good through June 30.
Honda Ridgeline	$4,500	$4,500 dealer cash, which cannot be combined with promotional financing. Good through June 30.
Infiniti FX45	$6,000	$5,000 dealer cash. Current Infiniti owners are eligible for an extra $1,000 in loyalty cash***. Good through June 30.
Jeep Commander	$5,900	$5,500 customer cash and $400 dealer cash, which cannot be combined with promotional financing or "Let's Refuel America" promotion. Good through June 30.
Lincoln Mark LT	$8,000	$7,000 customer cash, which cannot be combined with promotional financing. Current Lincoln Town Car owners are eligible for an extra $1,000 in loyalty cash. Good through June 30. Financing 0% for up to 60 months or 1.9% for 72. Good through June 30.
Lincoln Navigator	$6,000	$5,000 customer cash, which cannot be combined with promotional financing offer of 0% for up to 60 months or 1.9% for 72. Current Lincoln Town Car owners are also eligible for an extra $1,000 in loyalty cash. Good through June 30. All offers good through June 30.
Mercury Mountaineer	$6,000	$4,000 customer cash, which cannot be combined with promotional financing. Current Mercury Mountaineer owners are eligible for an extra $2,000 in loyalty cash. Good through June 30.
Mitsubishi Endeavor	$5,500	$4,000 customer cash plus $1,500 dealer cash, which cannot be combined with promotional financing. Current Mitsubishi owners are eligible for an extra $500 in loyalty cash. Good through June 30.
Nissan Armada	$4,500	$4,500 customer cash, which cannot be combined with promotional financing offer of 0.9% for up to 60 months or 2.9% for 72. Both offers good through June 30.
Nissan Titan	$5,000	$5,000 customer cash, which cannot be combined with promotional financing offer of 0.9% for up to 60 months or 2.9% for 72. Both offers good through June 30.
Toyota Sequoia	$6,000	$4,000 customer cash, which cannot be combined with promotional financing offer of 0% for up to 60 months. Good through June 30. Current Toyota owners are eligible for an extra $2,000 in loyalty cash. All offers good through June 30.
Volvo XC90	$4,250	$4,250 dealer cash, which cannot be combined with promotional financing offer of 0% for 36 months, 0.9% for 48, 1.9% for 60 or 2.9% for 72. Both offers good through July 7.

Data courtesy of Edmunds.com.
* Customer cash is given directly to the buyer from the manufacturer at the time of sale.
** Dealer cash, or marketing support, is typically an unadvertised manufacturer-to-dealer incentive. Dealers may choose to pass on some or all of the incentive in order to sweeten deals and spur sales. (They can also opt to not pass it on at all.)
*** Loyalty cash rewards consumers who already own or lease a vehicle by the same manufacturer.