Buy a car, get one free.
It's hard to believe. But with a deal more commonly seen at clothing sales, one car dealership in New Jersey has upped the ante to lure buyers who have become blase about the usual incentives offered on vehicles these days.
For buyers who purchase any new 2004 or 2005 model Nissan, the Route 46 Nissan dealership in Totowa is giving away a 2003 Nissan Sentra, usually an off-lease or traded-in vehicle.
"We've had a lot of interest and we've had a lot of customers take advantage of the sale," said Frank Tackett, a partner in the dealership.
Tackett said the new Nissans in the showroom range in price from $19,000 to $45,000, while he estimated the value of the second-hand models being given away at about $11,000.
Since late 2001, the U.S. auto industry has routinely offered thousands of dollars' worth of incentives per vehicle to boost sales.
Monthly auto sales have dived when automakers tried to pare back the deals, most recently in June. Sales bounced back in July as the Big Three automakers hastily slapped the incentives back on.
U.S. car buyers received an average discount of $4,982 on the sticker price in July, according to the latest report by auto research firm Edmunds.com. Full-size sport utility vehicles had the largest discount, of nearly $9,500.
For August, sales reports have been mixed and the official industry sales data are due on Sept. 1.
Heavy discounting in new vehicles has also driven down the resale value of many cars, with industry estimates that some less-favored models hold as little as 20 percent of their original value after five years.
