We don’t have a crystal ball to foresee the future but we know from experience much of what to expect regarding 2012 car deals.
Unless dramatic changes happen to our economy (which is not likely), we see 2012 being much like 2011 for automotive consumers.
Here are some of the things that we see occuring in 2012:
- Honda and Toyota will finally return to full production after the devastating earthquake and tsunami in Japan. They’ve lost business, market share, and some loyal customers. They will want it all back, and will offer some of the best incentives in the industry to help make it happen. We don’t know exactly when this will occur but expect it no later than mid-year 2012.
- As soon as Honda and Toyota begin their aggressive incentive programs, other car manufacturers will have to compete with their own programs. In this sense, an incentive war will be of great benefit to consumers. Good deals will be everywhere.
- Expect to see Hyundai and Kia make a big play for market share in 2012. New incentive programs and new styling will help make it happen.
- American car makers such as Ford, Chrysler, and General Motors have been taking advantage of the lull during 2011 with an excellent combination of rebates, factory-to-dealer cash, and 0% APR loans. It has been a good year to buy an American made car. We expect 2012 will be just as good if not better.
- Used car prices will remain high in 2012, as they have during 2011. The price gap between new cars and used cars has narrowed considerably. This makes new cars even better deals, especially when we consider that trade-in prices are also higher.
- We’ll continue to see many 0% APR and other low-interest loan deals because U.S. interest rates are at all-time lows and it’s not a big stretch for car companies to offer customers reduced rates as sales incentives.
- Luxury car makers will continue to resist offering incentives, knowing that their typical customer is not bargain hunting. BMW will be the exception, as they have been in 2011, by offering attractive lease deals, factory-to-dealer cash, and assorted bonuses (but not rebates). BMW leases are generally great deals.
- Great deals will be available early in 2012 on leftover 2011 models. Since there are very few differences (in most cases) between 2011 and 2012 models, the leftover vehicles make good deals. Mercury vehicles will no longer be made but there are leftover 2011 and 2012 models being sold by Ford dealers at fantastic bargains.
- Nissan will continue to be agressive with incentives in 2012, but we don’t quite know what to expect from other Japanese companies such as Mazda, Mitsubishi, Suzuki, and Subaru.
Overall, 2012 will be a good year for new-car buyers. Leasing will continue to grow in popularity, especially for luxury cars. Interest rates will continue to be low. Credit requirements will ease off a bit, but still remain relatively tight. Smaller cars and hybrids will be become more numerous. Electrics will remain a big question mark. We’ll welcome Fiat but will miss Saturn, Mercury, Pontiac, and Dodge Ram (now just Ram).
You can get free price quotes on any new-car make and model from Edmunds.comThe quotes will automatically include any cash-back rebates or discounts that are currently available.