Volkswagen and Audi will begin offering a new finance incentive called “United we Drive” beginning May 1.

As part of the program, current Volkswagen and Audi owners or lessees who finance through Volkswagen credit will be able to finance 10% more than they qualify for. This will enable them to purchase vehicles which they otherwise could not afford. (Considering the economy we’re in, this may not be such a great idea for consumers).

Another thing they’ll be offering is credit back to the dealer whenever they sell a VW Routan, Audi A6, or A8. The dealers will get an estimated $100 per Routan sold while Audi dealers will get $135 on each A6 and $225 on the A8. Not all dealers qualify and it doesn’t mean the dealer will pass the savings on to you (but it could be a negotiating tool to keep in mind).

Finally, Volkswagen Credit will begin offering 66 month financing as opposed to its current maximum of 60 months. All in all, these incentives basically deserve a collective yawn.

GM looks likely to extend their “Total Confidence” program into May due to its early success. The program, launched for the month of April, is similar to Hyundai’s Assurance Program. Under the terms, GM will make up to nine car payments if a buyer loses their job within a year of buying a GM vehicle.

While we have confidence GM will continue the program in May, we’re not too sure about the spelling in their marketing message:

General Motors today announced they will eliminate the Pontiac brand by the end of 2010. There are roughly 65 exclusive Pontiac dealerships in the US which will have to shut down.

If you’ve been considering buying a Pontiac, you may want to think twice. The resale value will probably take a hit. On the other hand, rebates are sure to increase and used Pontiacs may become cheaper.

For many months, Mini was one of the few manufacturers whose sales were holding up pretty well. Now things have changed. As the economy continues to worsen, even Mini Coopers aren’t selling anymore. So far this year, Mini sales are down 16% compared to a year ago.

For the past 3 months, Mini has been offering sweeter and sweeter incentives to move the cars off dealer lots. In February, Mini began offering 4.9% financing for 60 months. The next month, they dropped it down to 2.9% for 36 months. In April, they lowered it even more to 1.9% for 36 months (excludes the Mini Cooper convertible).

What’s in store for next month? Could we see 0% financing? We’ll have to wait and see, but one thing’s for sure: Deals on Minis have never been as good. If you’ve been waiting to own one, now’s a good time to be looking.

The 2009 Suzuki SX4 has been selling like hotcakes recently. At around $15,000, the SX4 is a very enticing alternative to the Mini Cooper, (not to mention it has available all-wheel drive). Sales are up nearly 50% compared to the same time last year. That means you won’t be getting a good deal on this car for some time.

There’s currently a shortage and though production has been increased, dealers in the US won’t receive the new cars until at least mid-May. We recommend holding off buying a SX4 for another couple of months until supply starts meeting demand again.

The 2009 Volkswagen Routan minivan has turned out to be one of the worst-selling cars in Volkswagen’s history. The newly introduced model rolled into dealer showrooms back in September 2008. Since then, they’ve sold only about 5,500 units.

Sales have been so bad, Volkswagen stopped producing the car only 1 month after introducing it. There were a total of 22,000 produced and at this rate, it’s going to take well over a year to sell them all (that’s if Volkswagen doesn’t produce any more).

In order to help sell the Routan, Volkswagen is offering 0% financing for 60 months and $325 per month lease payments. Current Volkswagen owners receive an additional $500 loyalty bonus.

Considering the dismal sales figures, we wouldn’t be surprised if Volkswagen is offering secret dealer cash to move these cars. If you’ve been thinking of buying a Routan, now is the time to act. Start by getting a price quote from local dealers.

GM and Chrysler dealers fear the manufacturer may soon go bankrupt, and they’re trying to figure out how to minimize their losses if that happens. One area they’re worried about is the rebate cash owed to them from the manufacturers.

Rebates are typically paid by the car dealer who then gets reimbursed by the manufacturer the following month. Rebates on GM and Chrysler cars can be as high as $6,000 each so that’s quite a bit of pocket change.

In an effort to minimize the risk of losing money on these rebates, some dealers are resorting to passing the risk onto the customer. We’ve heard of at least 1 GM dealer who has convinced his customers to “hold the rebate”, meaning they don’t get the rebate until GM reimburses the dealer. NEVER AGREE TO THIS!

If GM goes bankrupt, they may never reimburse the dealer, thus these customers are out several thousand dollars. If you run into a dealer who tries to pull this on you, insist on getting the rebate as part of the deal or simply take your business elsewhere.

Subaru has announced new rebates and lease deals on several 2009 models:

Rebates may vary depending on location. To see the exact rebates offered in your area, Request a Price Quote

Subaru Lease Deals

All Subarus now have some great lease deals. For example, the Subaru Outback has a special where you put down $999 upfront and pay just $377 per month for 36 months. The lease is based on 10,000 miles per year. All deals expire end of April but will probably be extended through May.

The number of dealerhips that went out of business in 2008 totalled just over 1,000. That’s the steepest drop in nearly 30 years. There are roughly 20,500 dealers in operation today, down 4.7% compared to last year. Most of the dealerships out of business are part of the Detroit 3 (GM, Ford, and Chrysler).

Here’s a 10 year graph showing the accelerating pace of dealership closings:

So are all these dealerships going out of business a good thing for car buyers? Yes and no. For the time being, the anser is yes. Dealers are going out of business because demand for cars has dropped by at least 30%. On top of that, credit has dried up so dealers are having a hard time financing their inventory.

But as more and more dealers go out of business, the ones remaining should find themselves in a healthier business environment. They will have less competition and will be able to charge higher prices (especially if there aren’t many dealers near them).

For the time being, dealers are really desperate to sell cars. If you can afford a new car, now is the time to buy. We recommend you get a free price quote to see what kind of deals your local dealership is offering along with the latest incentives and rebates.

Chrysler will no longer be offering its Employee Pricing Plus Plus program starting in May.   The program launched earlier this year gave customers employee pricing plus rebates as high as $6,000 on 2008 vehicles and $3,500 for 2009 vehicles. In addition, they offered 0% financing for up to 48 months and an additional $1,000 if you finance through Chrysler financial.  The program is still available for April.

There is no word on whether Chrysler will replace the program with a similar offering starting May.   In addition to ending the program, Chrysler will no longer be offering dealer incentives of up to $2,000 per vehicle for dealers who meet their order targets.   This means dealers will have less negotiating room to work with.

We expect Chrysler will replace the programs with something else, but the total incentives will probably not be as good as we’ve seen the last couple of months.  If you’re in the market for a Chrysler, your best shot at getting the best deal will probably be the last week of April.