If you're in the market for a Honda, you probably have noticed that -- unlike other manufacturers -- Honda isn't running ads touting cash rebates to buyers. That helps bolster the perception that Honda vehicles are in demand and that dealers are not knocking a lot off the sticker prices. But buyers of certain Honda vehicles have more leverage than they might realize. While there are no cash rebates, Honda is waving a lot of incentives in front of dealers if they move certain vehicles. Like other manufacturers, Honda has seen a slump in its sales of sport utility vehicles and its pickup, the Ridgeline. To boost sales, Honda has ramped up incentives. For the Ridgeline, the factory is offering dealers a total of $2,634 in incentives and leasing and finance deals. The Pilot has $2,504 in incentives, which had almost no incentives a year ago. Odyssey carries $1,701, while the Element comes with $995. Although a dealer may not tell you about these incentives, they are legitimate bargaining chips in price negotiations. Honda's incentives aren't limited to SUVs and trucks. The Accord has $2,119 in dealer incentives, put there as an effort to compete with the Camry. This is not meant to single out Honda, but more to point out that even brands which have a reputation for solid sales have to resort to dealer incentives in this market environment. Before sitting down for negotiations, check sites like
Edmunds.com to see what rebates and incentives are available.
On another subject, Bankrate gets many letters from dealers and car salesmen that the public has a wrong perception of them, and that's true to some extent. Many dealers have built solid reputations by dealing honestly with customers and providing excellent service. But then there are cases like this: The state of Georgia has accused Bill Heard Enterprises, one of the nation's largest dealer groups, of deceptive trade practices. According to the Associated Press, Heard's dealerships sent out letters to 10,000 owners of GM cars declaring an "Urgent Potential Recall Notification." The notices appeared to be from General Motors, but they were sent by Heard's dealerships in an effort to lure the owners into buying new cars or extended service contracts, according to the state of Georgia. Heard executives admitted the notices were "inappropriate,'' but blamed the company's advertising agency. Regardless of who did what, the end result is one more incentive for buyers to be wary of what dealers say.  | | This week | | | | • | Car incentives often hidden -- but they exist | | • | When a leased car is repossessed is there an early termination fee? | | • | How can an elderly woman get rid of an 18 percent car loan rate? | | • | My son still owes $5,000 on a car he totaled. What can he do? |
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