Car Discount's No Gimmick

Ray Martin Explains How To Best Take Advantage Of It

(CBS)  The employee discount program was an experiment that worked, and the other two automakers don't want to be left behind. GM not only reported fantastic sale numbers, the company also increased its market share, attracting new, first-time GM customers. Ford and Chrysler certainly don't want to lose customers to GM, so the pricing war is on.

All of this may not spell success for the companies in the long run, but it's resulting in great deals for customers right now.

Here's Ray Martin's advice about taking advantage of the deal:

Strike While the Iron's Hot. If you've been considering buying a new car, go ahead and do so now. These programs truly are good deals. If nothing else, check out the Big Threes' offers before heading to other manufacturers.

Research Trade-In Offers. If you're planning on trading in a car when you buy a new one, you may not receive as good a deal on that trade-in as you would have in the past. Dealers are offering such good prices on the new car, that they may try to make some extra money off of you by low-balling the trade-in offer. Check out Kelly Blue Book and Edmunds, so you know if you're receiving a fair trade-in offer and so you can fight for a better offer, if needed.

Look for Used Car Deals. Martin points out that these lower prices on new cars is bound to translate to lower prices on GM, Ford and Chrysler used cars over the coming weeks. Use this information to your advantage when negotiating to buy a used car, and be prepared to adjust pricing if you're selling a used car.

The final question that these price wars beg: Employee discount programs are scheduled to end in August. What can kind of prices can consumers expect after that? Critics of the employee discount offers say that customers are going to get so used to low prices, that they won't settle for anything else and car companies will be forced to comply.

While no one knows for sure what automakers will offer in coming months, GM has already stated that '06 sticker prices will be lower than '05 sticker prices, though higher than the discounts offered now.

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