Luxury Car Dealers Make Incentives for Pricey Hybrids

As the new 2010 models try to squeeze onto dealer lots, automakers are offering great incentives in hopes of clearing out their leftover 2009 premium hybrids. Who would have thought that low gas prices could actually be bad for anyone in this economy? If you’re in the hybrid vehicle business, I guess this could be a nightmare. Sales of these hybrid-electric vehicles have been affected due to the downturn of the economy and low gas prices that have in turn lowered the demand for this type vehicle.

The owner of the market’s most expensive hybrid, Lexus’ LS 600h L, offered a whopping $10,000 dealer cash incentive on the ’09 model of their flagship hybrid. Toyota Motor Corp.’s Lexus premium division also offered $1,000 bonus to any sales associate that sold this vehicle starting at $106, 035. As with almost all luxury sales, the entire LS line is down 53.7 percent through September. Its hybrid variant of the GS midsize sedan, the ’09 GS 450h, also has a $3,000 dealer cash incentive and the same $1,000 bonus for sales associates.

With their total sales down about 44 percent for the year, various regional dealers of General Motor Co.’s Cadillac unit have been advertising five-figure discounts on the 2009 Escalade Hybrid, ranging from $73, 135 to $87.435 for the four-wheel drive Platinum Edition. Chevrolet and other GMC full-sized SUVs, not premium vehicles but still costly, have also been offering similar givebacks.

The premium luxury segment has an average Total Cost of Incentives of $6,551 per vehicle. In September, Edmunds.com’s data analyst said that they were second only to the premium sportscar segment in leading the industry in incentive spending per vehicle.

Via: Auto Observer