TODAY’S AUTO SECTION.
Each May, we Americans give tribute to those in the military who have paid the ultimate price serving their country. This Memorial Day is all the more poignant as we also remember family, friends and colleagues who have fallen to the coronavirus, a deadly, invisible enemy.
The pandemic has slammed the U.S. economy, triggering bankruptcies and putting millions out of work. Goldman Sachs warned earlier this month that the unemployment rate could hit 25%.
But while millions of Americans hunker down, worried about their livelihoods and wary of the next wave of COVID-19 that health experts warn will hit later this year, there’s a glimmer of positive news if you recently bought or leased a new vehicle or are shopping for one.
To jumpstart business and reduce customer stress, the auto industry has come up with measures ranging from online shopping and contact-free transactions, to a flood of incentives, including rebates, spiffs for brand loyalty, 0% or low-interest loans, deferred payments and nohassle lease extensions. In fact, TrueCar said buyers on average saved 10% off their vehicle’s manufacturer suggested retail price (MSRP) in April, compared to 8.6% last April.
According to Edmunds, 0% finance deals accounted for 25.8% of financed purchases in April. “It’s a buyer’s market,” said Jessica Caldwell, of Edmunds. “And while there aren’t a lot of buyers right now, those in a position to purchase a new vehicle are taking advantage of the most generous financing programs we’ve seen this century.”
The offers vary widely and some get creative. For example, qualified Volkswagen owners may be eligible to have up to six car payments waived if they’ve lost their jobs. With VW’s monthly cap of $750, that represents up to $4,500 of aid. Dodge, meanwhile, has broadened its “Power Dollars” promotion to apply to all Chargers or Challengers. The purchaser gets a $10 discount for each rated horsepower. That means a $2,920 price reduction for a base Charger SXT and its 292-horsepower 3.6-liter V6 to a whopping $7,070 discount on the supercharged 6.2-liter Hemi V8-powered Charger Hellcat.
Steven Wolf, owner/operator of Helfman Dodge, Chrysler, Jeep, Ram and Fiat in Houston, is quick to point out that qualified buyers can currently get 72-month loans at 0% or 84-month financing at 0.9%. In some instances, the buyer may also qualify for perks such as no monthly payments for 120 days.
“If you have a heartbeat, you can probably get a loan,” said Wolf. “The incentives are driving traffic like you wouldn’t believe. Just remember, though, the factories have been shut down so inventories are getting real skinny.”
The “big, big rebates are on trucks,” Wolf said, recounting how he recently sold a 2020 Ram 2500 Tradesman crew cab equipped with the popular 6.7-liter Cummins turbodiesel engine to a firefighter. With employee pricing and incentives, the price came to $47,379 before title, tax and license.
We thought readers might be curious as to what other incentives are in play, so we’ve put together an overview by reaching out to automakers, summarizing their responses and providing a URL to more information.
Keep in mind that the best deals go to those with excellent credit scores. And offers will often vary by region and dealership. That’s why it’s important to do your homework, use the manufacturer’s website and read the fine print. And don’t forget to reach out to your local dealer (s), who may offer their own sweeteners. A lot rides on timing and dealer inventories.
Automakers are quick to point out that not every shopper will qualify. The terms usually only apply if the sale or lease is through the particular manufacturer’s financing arm. With incentive programs ending as soon as June 1, you may want to act quickly. At least one industry observer thinks incentives may be scaled back.
“With sales in April outperforming most analysts’ expectations and access to dealerships improving, it’s likely that the biggest incentives are behind us, but still strong going into Memorial Day weekend,” said TrueCar chief analyst Eric Lyman. “That said, with inventory supply shortages in certain markets due to restricted production, we think we’ll start seeing more sophistication around unique regional incentives based on local inventories.”
“If you have a heartbeat, you can probably get a loan. The incentives are driving traffic like you wouldn’t believe. Just remember, though, the factories have been shut down so inventories are getting real skinny.”
Steven Wolf, owner/operator of Helfman Dodge, Chrysler, Jeep, Ram and Fiat
Acura and Honda
Qualified customers can get a 90-day deferment on new vehicles financed through Honda or Acura Financial Services. The following deals end June 1.
2020 Acura RXLs have 1.9% financing for 24- to 36month loans or 2.9% for 37 to 60 months. A 36-month lease on a 2020 RDX runs $379 with $2,799 due at signing. A certified pre-owned TLX can be financed at 0.99% APR for 24 to 36 months or 1.49% for 37 to 60 months.
Meanwhile, Honda offers deals on nearly every model.
In addition to rebates for college grads, military personnel, first responders and certain healthcare professionals, there may also be $1,000 conquest rewards (switching to Honda from a competitor brand) or $500 spiffs for brand or model loyalty. Just a few examples: a 2020 Civic hatchback lease requiring no money due at signing at $280 per month for 35 months. Or 0.9% loans for 24 to 60 months on a 2019 Passports or $1,000 off on Accords if you currently own a 2009 or newer Honda.
Honda and Acura can help customers who financed their vehicles through Honda Financial Services or Acura Financial Services with payment extensions and deferrals, as well as late-fee waivers. For more: automobiles.honda.com/covid-19
Alfa Romeo
Alfa Romeo is offering 0% financing for 72 months on certain 2019 and 2020 models; $500 first responder bonus cash program (law enforcement officers, firefighters, EMTs and medical professionals) and up to six months free Apple Music.
If you buy a 2020 Giulia or Stelvio and happen to own or lease a Chrysler, Dodge, Jeep, Ram or Fiat you can also get a $1,000 loyalty bonus.
The incentives apply to Alfa’s entire lineup, whether they’re on the lot, in transport or ordered. www.alfaromeousa.com
Audi
Through the end of May, Audi is offering 0% loans on all 2019 Audi models, except for RS, and up to 72 months on the A4 or A5 family, the A6 and the Q7. There’s also 1.99% financing on 2020 Audi models, excluding the RS and R8
If you are already in a 2009 or newer Audi, there’s a loyalty discount of $2,000 on all 2019s and $1,000 for 2020 Audi models.
Current customers are encouraged to manage their account online before June 1 to request payment assistance or to extend their lease agreement. www.audiusa.com/myaudi/finance
BMW
BMW has a 90-day to first payment program as well as low interest rates. Some examples: 0.9% APR for up to 60 months on new 2019 and 2020 BMW models. (Applicants must take delivery within 60 days.) One example: the 2020 BMW 228i xDrive Gran Coupe can be leased at $399 per month with $3,999 due at signing through June 1. www.bmwusa.com/special-offers.html
Buick
Very well-qualified buyers can get 0% APR loans for 84 months on most Buick SUVs. ww.buick.com/here-to-help
Cadillac
Cadillac is offering $9,000 cash allowances on 2020 Escalades as long as the buyer takes delivery by June 1. Other models and incentives:
2020 XT4, XT5, XT6: for well-qualified buyers, 0.9% APR for 72 months plus $1,500 purchase allowance and deferred monthly payments for 120 days.
2020 XT4, XT5, CT5: Current GM or non-GM lessees can get $1,500 toward the lease of a new XT4, XT5 or CT5.
2020 XT6, Escalade and CT6: Current eligible GM or non-GM lessees receive $2,000 toward the lease of a new XT6, Escalade or CT6.
2020 CT5: $1,000 cash allowance on purchase, but must take delivery by June 1, 2020.
www.cadillac.com/discount-programs
Chevy
Consumers can choose between 0% APR for 84 months or deferred monthly payments for 120 days through GM Financial on most 2019 models and 2020 Equinox, Silverado 1500 and Trax models. If cash is short, a “sign and drive” promotion features $0 first month’s payment, $0 down and $0 security deposit (tax, title, license and dealer fees are extra.)
Well-qualified buyers can delay the first monthly payment for 120 days on most 2020 models.
There’s also a first-responder discount through June 30. For details see www.gmfirstresponderdiscount.com
Chrysler, Dodge, Fiat, Jeep and Ram
Fiat Chrysler Automobiles has a program of no payments for 120 days on most 2019 and 2020 model year Chrysler, Dodge, Fiat, Jeep and Ram models. Zero-percent loans for 72 months are available for certain models. There’s also employee pricing for 2019 Ram 2500 and 3500 models.
FCA also offers a $500 discount to law enforcement officers, firefighters, EMTs and medical professionals who purchase or lease a new 2019 or 2020. www.driveforwardfca.com
Ford and Lincoln
Ford’s “Built to Lend a Hand” program lets eligible new-car buyers in the U.S. hold off payments for up to three months. Ford will also pay for three months — providing up to six months of peace of mind on all 2019 and most 2020 vehicles (2020 Super Duty trucks are excluded).
Ford is also offering 0% financing for up to 84 months on new 2019 vehicles and 0% for 72 months on 2020 vehicles (again, except for Super Duty).
There are also $500 incentives for first responders, military and medical professionals. To register for a valid certificate number, buyers need to start at either www.FordSalutesThoseWhoServe.com or www.LincolnSalutesThoseWhoServe.com
The Lend a Hand programs are scheduled to end June 1, but we were told they were extended once before and that could happen again.
GMC
Here are some of the deals on GMCs:
2020 GMC Yukon and Yukon XL — 0% for 84 months. Most 2020 GMC Sierra 1500, Acadia, and Terrain models — 0% for 84 months for very well-qualified buyers.
www.gmc.com/here-to-help
Hyundai
For Memorial Day, Hyundai has sweetened its military and first responders incentives. Active or retired military personnel, active first responders, healthcare workers or hospital employees and their spouses can receive $1,000 toward the purchase of any new Hyundai through June 1, 2020.
Hyundai also has nearly two dozen offers on 2019 and 2020 products through June 1. Examples: savings of up to $2,000 on 2020 Santa Fe or Tucson SUVs, or as much as $4,500 off new 2019 Sonatas. On the financing side, the 2020 Kona compact SUV can be had for as low as 0% for up to 60 months and the first payment isn’t due for 90 days. www.hyundaiusa.com/us/en/offers
Infiniti
Infiniti Financial Services is offering 0% APR financing for up to 72 months on any 2020 Infiniti, and will defer payments for 90 days. The offer is available at participating dealers through June 30, 2020. www.infinitiusa.com/coronavirus-covid19
Jaguar Land Rover
Jaguar Land Rover has 0% financing on 2020 Jaguar and Land Rover models, as well as the 2021 Jaguar FType, for up to 72 months. They will also offer a 90-day first payment deferral for qualifying customers.
Jaguar Land Rover Financial Group may waive two payments of up to $750 each for eligible returning Jaguar lessees who sign a new lease through Jaguar Land Rover Financial Group. The lease payment waiver covers all 2020 Jaguar models, as well as the 2021 F-Type, and 2020 Land Rover Discovery Sport, Discovery, Range Rover Evoque, and Range Rover. www.jaguarusa.com/current-offers/ www.landroverusa.com/current-offers/
Lexus
Lexus has quite a lot going on, starting with a 90-day deferral of the first payment on vehicles purchased through Lexus Financial Services. Qualified buyers can score 60-month, 0% loans on all new 2019s & 2020s. There’s also a $1,000 lease loyalty bonus available with most new 2020 models. A couple of specifics:
RX L & RX L Hybrid: Qualified buyers get 0% for 60 months and $750 “retail cash.” Meanwhile, eligible lessees can score a new 2020 RX L for $455 a month for 36 months with $3,999 due at signing. They may also apply both $1,750 in “lease cash” and $1,000 in “lease loyalty cash.”
ES & ES Hybrid: Qualified buyers get 0% for 60 months; or lease a new 2020 ES (gas engine) for $379 a month for 36 months with $3,299 due at signing. The $1,750 lease cash plus $1,500 in lease loyalty cash is also available. www.lexus.com/offers
Mazda
Mazda’s hoping to see sales zoom with 0% financing for 60 months on all 2020 products and some 2019s. Plus $1,000 cash is available on most models as is 90-day first payment. Mazda also has a $1,500 loyalty reward for current Mazda owners who purchase or lease a new 2018, 2019 or 2020, including the CX-5 Signature Skyactiv-D or 30th anniversary MX-5 Miata. Then there’s the $500 “bonus cash” offer to show appreciation for military and healthcare workers. Buyers must take delivery from dealer stock by June 1, 2020.
So if you’re healthcare or military professional who’s earned a superb credit rating, and you already drive a Mazda, you could score a new 2020 MX-5 Miata Sport for $23,580 before tax, title and license, have five years to pay and not spend a penny in interest. (If you can find a favorite Mazda, grab it, because these sweeteners are set to expire June 1, 2020.) bit.ly/mazdaincentives
Mercedes-Benz
Mercedes-Benz is offering 0% 36-month loans on most models with a 90-day deferment for the first payment. For those looking to lease, Mercedes has deals on both 2019 and 2020 models. One example: a 2019 A 220 sedan at $329 per month for 36 months, with $3,123 due at signing.
With many models, Mercedes-Benz Financial Services also offers a credit toward the first payment of a new loan of up to $500 or $750, depending on the vehicle.
www.mbusa.com/en/special-offers
Mini
Mini is offering financing as low as 1.9% APR on select 2020 models, and down to 0% financing on remaining new 2019 models. In addition, Mini will make the first three payments (of up to $333 per month) and defer payments up to 90 days. Effectively, what that means, a Mini spokesman said, is that a Mini buyer would not have to stress over car payments for up to six months.
On top of that, current Mini owners will learn that loyalty can pay off — they’ll get $2,000 off when they order their next Mini. www.miniusa.com/tools/shopping/offers.html
Mitsubishi
Mitsubishi has low/no-interest loans on 2019 and 2020 CUVs like the Outlander and Outlander Sport. For 2019 models, Mitsubishi’s financing partner, Ally Financial, is writing 72-month loans at 0% APR. It’s the same for 2020 Mitsubishis except the notes are for 60 months. With either, the first payment can be deferred 90 days.
In addition to a $500 rebate for members of the military, some customers may be eligible for a $250 bonus if they drive a Mitsubishi, Saturn, Suzuki, Scion or Isuzu.
www.mitsubishicars.com/new-car-lease-special-offers
Nissan
Nissan customers can get three months of deferred payments, and on certain models Nissan Motor Acceptance Corp. will cover the payments for up to two more months if a new retail customer qualifies.
Nissan urges consumers to also check with their local dealership, as many offer special programs and financing that include zero money down, deferred payments and cash assistance while using no-touch documentation that’s emailed to you. Most dealers can also perform home deliveries of new and pre-owned vehicles.
www.nissanusa.com/shopping-tools/deals-incentivesoffers.html
Porsche
“Extremely well qualified customers” can get 1.95% APR loans for up to 60 months and 90-day deferrals for the first payment on many Porsche models. What’s that look like? Well, a 36-month lease on a 2020 Macan works out to $699 a month with $6,089 due at signing.
In response to the COVID-19 crisis, Porsche has fasttracked many of the ways it does business. The manufacturer says that more than 70 of its dealers are now doing live video consultations. Its new “Porsche Finder” tool streamlines the search for a pre-owned vehicle by model variant, generation, colors and other parameters from home. Due to the COVID-19 outbreak, Porsche decided to add three months of coverage to new vehicle warranties set to expire between March and May 2020. http://porschedealer.com/pfs
Toyota
First-payment deferrals, 0% loans and lease promotions abound at Toyota. The deals vary by region, but in Texas, Louisiana, Oklahoma, Mississippi and Arkansas, where trucks are hot commodities, 2020 Tundra and Tacoma “Special Edition” pickups enjoy special perks for a limited time.
A four-wheel-drive 2020 Tundra Special Edition can be leased for $299 a month for 24 months with $2,999 due at signing. If you’d rather buy than lease, there’s a $2,000 “Special Edition Bonus” and a 0% 72-month loan.
The same terms apply to the 2020 Tacoma Special Edition except that it’s 60 months. A 24-month lease on the Tacoma will run $199 a month with $999 due at signing.
Toyota’s bread-and-butter 2020 models — the RAV4, Camry and Corolla — can be had with 60-month contracts and 0% APR. If you’re not interested in financing or don’t qualify for a super-low interest rate, a $1,500 “customer cash” bonus may be available. www.toyota.com/gst/deals-incentives/
Volvo
Volvo Car Financial Services will go a low as 0% APR on a five-year loan or cover two complimentary lease payments on a new XC90, XC60, XC40 or S60. Volvo is also onboard with online buying with home deliveries and test-drives. Shopping can be done via Volvo’s virtual showroom.
Military personnel stationed in the U.S. may be eligible for negotiation-free employee pricing, an affinity bonus ($1,000 on a purchase; $500 on leases) as well as other Volvo offers.
Volvo is partnering with Costco, whose members may qualify for a $1,250 bonus on a 2020 XC40, XC60 or XC90 or a $2,000 bonus on the V60, V60 Cross Country, V90 or V90 Cross Country.
The incentives end June 30, 2020. www.volvocars.com/us/shopping-tools/purchase/offers
Volkswagen
Earlier we mentioned VW’s payment waivers (up to six months with a cap of $4,500) for customers who financed their new vehicle between April 15 and May 31 but were laid off. Turns out that most new Volkswagens are available with 0% 72-month loans and 120-day firstpay deferment. In addition, for a limited time, most certified pre-owned VW models are available with 0% 60-month loans. www.vw.com/the-community-driven-promise/