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A new plan being put in place by eight states seeks to see another 3.3 million zero-emissions vehicles (ZEVs) on the road by 2025.
Electric car maker Fisker Automotive is expanding its grip on worldwide sales by pushing its new Karma in Canada.
To bring the cars to the Canadian market with the smallest investment possible, Fisker partnered with existing retailers in Toronto, Calgary and Vancouver to market its car. In Toronto, a standalone store will be constructed in a well to do area of the city to try and push sales up in the Country’s largest market
Electric vehicle sales in Canada are also backed by the Canadian government as well as provincial governments, with Ontario, British Columbia and Quebec offering incentives up to $8,500 CAD on new electric vehicle purchases. Ontario residents also get the benefit of unrestricted access to high occupancy vehicle lanes for plug-in cars. The province of Quebec is offering to pay for half the cost of a charging station.
With fewer and fewer quality, low-mileage used cars on the market (thanks to slowed production output and reduced sales over the past few years), those who are looking towards saving some money are finding that buying a new car is costing roughly the same as buying a used one. In fact, in many cases, a new car is actually cheaper.
According to Edmunds.com, buying a new BMW M3 costs just $34 a month more than buying a one year old example. It gets even better if you’re looking for a Chevrolet Corvette, as a new model is about $12/month less than a used model.
These are just two examples in an industry that is filled with them. According to chief economist Paul Ballew, as much as 500,000 new cars would be sold to people who would have bought used.
Ballew said: “There’s a substitution effect going on between new and used. When you get those price gaps closing, you get people that are willing to shop new that wouldn’t have before.”
All this is good news for the auto industry, which has taken quite a tumble in the post recession era. Although some companies are still trying to recover, luxury car manufacturer BMW has risen 13% and Mercedes-Benz has also sold 7.3% more cars this year, compared to last. Even the sportscar market has seen a upswing, with a 2.9% growth.
So with car companies putting more effort into shifting new products, if you’re in the market for a car, surprisingly, you might get a better deal on a new one.
While we won’t have final March sales numbers until Thursday evening, but for the first time since February of 2010, Ford looks set to beat GM in sales figures, with 210,000 units sold.
GM won’t fare so badly, with a projected 208,000 cars and trucks moved in March. GM’s slump – and Ford’s success – has been attributed to a reduction on incentives by the General, and Ford’s bump in factory money. GM was previously the industry leader in incentives.
While Japanese automakers like Toyota, Honda and Nissan reported strong showings, the natural disasters in Japan may prove to be a thorn in their side, and Edmunds has already reported a downturn in sales for March, based on these events, as well as higher gas prices.
New offer means some models discounted by as much as $9,000
In a bid to get inventory moving out of showrooms in a hurry, Chrysler has decided to offer a new incentive program that would double the value of the government’s cash-for-clunkers program.
Chrysler will offer $4,500 off (or 0 percent financing for 72 months) on most of its 2009 inventory – excluding the Dodge Challenger, Sprinter, Jeep Wrangler and all SRT products. The $4,500 incentive is even available on vehicles that do not meet the requirements for the cash-for-clunkers program, which was recently signed off on by President Obama.
Cash-for-Clunkers, or CARS (Car Allowance Rebate System) gives a $4,500 rebate on a new car when it gets 10 mpg or more better fuel mileage than the one traded in. The rebate is $3,500 on vehicles that get 4 to 9 mpg better or trucks that get 2 to 4 mpg better.
Chrysler, now under new leadership from Italian automaker Fiat is hoping the incentive will help sales rebound. Chrysler has been hit particularly hard this year with sales down 45.7 percent for the first six months.
When combined, these two offers mean a $17,090, Dodge Caliber SE could leave showrooms for as little as $8,090.
Chrysler’s “Double Ca$h for Your Old Car,” incentive starts tomorrow and runs through August.
[Source: Automotive News]