The pickup truck glut is good news if you want to buy a spanking new full-size pickup. Thousands and thousands in sales sweeteners await you.
Automotive News reports that dealer lots are "clogged" with inventory in the United States and it's fair to assume a similar story in Canada. After all, a price war is raging.
The industry publication's data centre says General Motors' dealers had a 122-day supply of Chevrolet Silverado and GMC Sierra pickups in the last month or so; 60 days is about ideal. Chrysler and Toyota, says Automotive News, were at 93; Ford at 79.
Canadian auto analyst Dennis DesRosiers has for many months cast a negative spotlight on auto makers who are producing too many pickups, warning that a glut will force to car companies and their dealers to offer the kind of big incentive money that helped to drive GM and Chrysler into bankruptcy. Still, sales sweeteners are good for buyers, though not so good for the bottom lines of car companies spending the money to entice customers to take the plunge.
One worry DesRosiers has noted and which is echoed in a report from Automotive News: a lot of pickup sales were booked when the trucks went to the dealers. That pumped up sales figures in recent months, but now certain car companies are being forced to spend money on "profit-sucking incentives while the glut is cleared."
GM, for instance, has its Employee Pricing promotion in gear, the result of which are incentives that could add up to $11,000 or more on, say, a $35,000 rig. It's a similar story at Ford, which also has an Employee Pricing event running to the end of the month.
GM officials, and others, hint that the deals may not last, says Automotive News. The Detroit car companies in particular say they have learned to match production with demand, thus avoiding big sales blowouts.
Perhaps, but Deals of the Week has yet to be convinced that Detroit's car companies are strictly matching pickup truck production with demand. If that were the case, the offers would surely not be so sweet.
Deals also noticed that the Chevrolet Equinox has slipped into the list of Top 10 best-selling light trucks. Yes, there is an Employee Pricing deal here, along with the possibility of nearly $2,000 more in factory offers.
Oh, and if you have gasoline in your veins, take note that BMW Canada has a $4,500 offer on the M3 Coupe. If you bargain hard, you might be able to squeeze a few thousand more out of your local dealer in form of an additional discount.
As usual, Deals of the Week obtained pricing information from carcostcanada.com. Here are the numbers:
2011 Ford F-150 SuperCrew 4x2 6.5' XLT w/Ecoboost V-6
- MSRP: $35,899
- Freight, dealer prep, air conditioning tax: $1,550
- Employee Pricing discount: $4,111
- Factory discount: $6,000 (Delivery Allowance factory-to-dealer rebate)
- Factory discount: $500 (Dealer Cash factory-to-dealer rebate)
- Taxable subtotal: $26,838
- Total price with 13 per cent HST: $30,326.94
- Note: finance rates as low as 6.49 per cent for up to five years
2011 GMC Sierra 1500 2WD Crew Cab 143.5 SL Nevada Edition
- MSRP: $34,575
- Freight, air conditioning tax and dealer prep: $1,550
- Employee Pricing discount: $3,941
- Factory discount: $7,000 (Stackable Cash delivery allowance factory-to-dealer rebate)
- Taxable subtotal: $25,184
- Total price with 13 per cent HST: $28,457.92
- Factory discount: $1,000 (Cash for Leases factory-to-consumer rebate)
- Final price: $27,457.92
- Note: Finance rates of 3.0 per cent for five years
2011 Chevrolet Equinox 2WD 1LT
- MSRP: $27,840
- Freight, dealer prep and air conditioning tax: $1,550
- Employee Pricing discount: $2,338
- Taxable subtotal: $27,052
- Total price with 13 per cent HST: $30,568.76
- Factory discount: $750 (Friends and Family bonus)
- Factory discount: $1,000 (Cash for Lease factory-to-customer discount)
- Final price: $28,818.76
2011 BMW M3 Coupe
- MSRP: $71,600
- Freight, dealer prep and air conditioning tax and Green Levy: $2,095
- Dealer discount (estimated): $3,000
- Factory discount: $4,500 (Alternate Cash Back factory-to-dealer rebate)
- Taxable subtotal: $66,195
- Total price with 13 per cent HST: $74,800.35
Pricing information source: carcostcanada.com. Calculations based on Ontario customers. Please note that while the information above is accurate at the time of publication, incentives are given at the discretion of individual dealers, and may be changed or discontinued at any time. Dealer discounts are negotiated with the customer on a case-by-case basis.