With sales slowing, Smart car offers cut-rate financing as first-ever incentive

[spdickey]

USA TODAY With sales slowing, Smart car offers cut-rate financing as first-ever incentive - Open Road: A conversation about the cars and trucks we drive - USATODAY.com

Jun 16, 2009

In the world of the Smart car, where life always seems so happy and carefree, another dose of reality has intruded. Sales have slowed enough that now Smart USA is offering its first sales incentives: 4.2% financing. Word came in the summer newsletter:

"Now smart USA makes purchasing a 2009 Smart an even better deal by offering 4.2 percent financing on all available cars, to help jump start new car sales and encourage new car buyers to consider one of these clever cars. "

Mercedes-Benz parent Daimler, which makes the Smart Fortwo in France, reported that Smart car sales slipped 56.6% in May compared to the same month last year, far less than the 30.5% falloff for Mercedes. But for the first five months of the year, Smart sales are only off 15.5% and there are more than 32,000 Smart cars on American roads now. Smart cars, which start at $12,900, are sold in the U.S. at 77 dealers and imported by Penske Automotive Group, which just acquired the Saturn brand from General Motors.

The introduction of sales incentives doesn't come as a complete surprise. Back in March, we reported how Smart cars were starting to pile up on dealers lots as potential buyers backed out of their $99 refundable reservations.

[jwight]

USA TODAY, a day late and a dollar short. Those rates were posted here several days back.

[Mike T]

In Canada there are smart Canada sponsored offers of up to $3000 off list price on any smart. That sounds better to me because I usually pay cash for cars!

[Macaw]

Ummm.... capital one shows 4.79 so I'm not sure 4.2 would be considered "cut-rate" considering the big boys have 0%.... but still a bit better than regular banks...

[jwight]

One of the FL smart centers is offering 3.9% now. Navy Federal Credit Union is at 3.75% for up to 36 mos.

[chieftmc]

Originally Posted by jwight

.. Navy Federal Credit Union is at 3.75% for up to 36 mos.

And IF you borrow against "shares", it's only 1.75%

[John_H]

NFCU I respect. Capital One, on the other hand, may "show" 4.79% but is that rate available to 80% of customers or 8%? The rate people can typically get may be different than what's "shown."

[RVGRINGO]

More Smarts might sell if they used four lug wheels and rims with more available tire sizes, a five year warranty and reasonable service costs. Often, as mentioned before, the MB attitude toward Smart owners is really poor. Maybe Smarts would be more popular in those newly acquired Saturn dealerships; both are 'cult cars'.

[jwight]

Originally Posted by RVGRINGO

More Smarts might sell if they used four lug wheels and rims with more available tire sizes, a five year warranty and reasonable service costs. Often, as mentioned before, the MB attitude toward Smart owners is really poor. Maybe Smarts would be more popular in those newly acquired Saturn dealerships; both are 'cult cars'.

But then they wouldn't be smarts. As for Saturn being a cult car, I think that died a long time ago; recent Saturns are just rebadged GM or Opel clones.

[jwight]

We have a winner! 2.99% if you're in the NYC area: 2.99 financing available on smart cars.