After the worst year for auto sales in decades, you’d think automakers would be practically giving away cars just to make a sale. Nope.
Blame "Cash for Clunkers." The program spiked car sales in July and August and replaced nearly 700,000 clunkers with vehicles averaging 58% better fuel efficiency. And it sapped inventory in a serious way.
Supply is at levels not seen since the not-so-go-go early 1980s, says Erich Merkle, president of Autoconomy.com, an auto-industry consulting firm. Merkle says a hangover period is normal following any type of incentive program.
The 2009 cars popular with buyers trading in their clunkers, such as the Honda Civic, Toyota Prius and Ford Escape, are toughest to find. Jesse Toprak, of TrueCar[truecar.com], an automotive-data company that tracks transaction prices, says that low inventory is erasing discounts on small cars and crossovers. Popular hybrids, such as the Toyota Prius and Honda Insight, will be priced close to sticker, or even higher, as long as gas prices are at or above $3 a gallon, he says.
Where the Deals Are
Incentives on 2009 models are still available, even on cars that supposedly ran out because of the clunkers program, says Jessica Caldwell, of Edmunds.com. "The reality is, there are lots of programs being offered, but you may not be able to find these vehicles. Manufacturers will discount regardless of supply because they want to move out the 2009s to make room for 2010s."
You can track down new cars (as well as used) at sites such as Vehix.com. Among the hot deals are Hyundai’s $3,000 rebate for the 2009 Sonata and $2,000 rebate on the 2009 Santa Fe (through September 30). And if you missed cash for clunkers, Hyundai is offering an additional $1,000 for any vehicle that would have qualified for the program on top of its trade-in value, which you negotiate with the dealer.