GM, Ford and Honda Prices May Drop Due to Increased Production

Some of the most popular models purchased under the program have been small sedans from Chevrolet, Ford, and Honda. These are the same cars that had a big drop-off in sales in the first half of the year.
GM has stated they will increase production by about 60,000 units later this year. The production increase will heavily target the Chevrolet Cobalt.
Meanwhile, Ford said they will ramp up production on the Focus and Escape models, while Honda will increase production on the Civic, CR-V, and Odyssey.
This is a tough decision for the manufacturers since sales of these vehicles were generally poor before the "cash for clunkers" program. Although sales weren't strong, they had managed to lower production to levels where dealers could price the cars higher and offer less incentives.
Now the manufacturers are faced with a dilema. Inventory has gotten too low and the "cash for clunkers" program was extended. However, the program is starting to run out of steam. The first week of August saw a big drop in sales compared to the last week in July.
If GM, Ford and Honda overshoot production and the "cash for clunkers" program fizzles out soon, these car makers will once again have too much inventory. This means prices will likely head back down.
If you're thinking of purchasing one of these vehicles and you don't have a "cash for clunkers" trade-in, your best bet may be to wait at least a couple of months. Inventory levels should go up as demand goes down. Furthermore, the 2010 models are starting to hit the showrooms. Dealers will be pressured to sell any 2009 models left over as they try to make room for the 2010s.
3 Steps Every Car Buyer Needs to Take to Save Maximum Money
The key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:Step 1 Get Prices From My Trusted Network
Select the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).Step 2 Get Prices From TrueCar / CarsDirect
TrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.Step 3 Complete my Checklist
Follow this up with my checklist to make sure you squeeze out every last bit of savings.- Gregg Fidan

Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid
About The Author

Latest Weekly Car Buying Tips
February 2023
- Worst Cars to Lease Right Now Feb 02, 2023
- Top 100 Cheapest New Cars Feb 02, 2023
- Real Prices of Compact Cars Feb 02, 2023
- Cheapest Luxury Lease Deals Feb 02, 2023
January 2023
- Best Car Deals Around the Country Jan 26, 2023
- Price Comparison of Subcompact SUVs Jan 26, 2023
- Tesla Drops Prices Up to 30% Jan 26, 2023
- New Cars You Should Wait to Buy Jan 26, 2023
- Top 100 Cheapest Lease Deals Jan 19, 2023
- Best Car Deals by Category Jan 19, 2023
- Cars With the Largest Rebates Jan 19, 2023
- Real Prices of Large SUVs Jan 19, 2023
- New Cars with the Most Available Inventory Jan 12, 2023
- Biggest Discounts on New Cars Jan 12, 2023
- Real Prices of New Compact SUVs Jan 12, 2023
- Real Finance Rates with 750 Credit Score Jan 12, 2023
- Best Bang for Your Buck Lease Deals Jan 05, 2023
- Best Electric, Hybrid Lease Deals Jan 05, 2023
- Best 0% Finance Deals January 2023 Jan 05, 2023
- Real Prices of Midsize SUVs Jan 05, 2023