The 3-day Labor Day holiday ushers in end-of-the-model year sales that will probably go on until they are relabeled Black Friday and Holiday Sales Events in November. This is a good weekend to get out there and deal, though prime time will probably be Friday night, since it also coincides with the end of the month and dealers keen to make sales targets will probably be more generous than they will be on Sept. 1.
A cursory perusal of some of the big manufacturer sites shows that trucks will be the order of the day at some, crossovers at others and sedans at those brands still in the segment. If you’re looking for a pickup bargain, Chevrolet, which is just rolling out its redesigned 2019 Silverado, is still looking to clear out the previous generation models with some hefty discounts. It’s offering nearly $10,000 in discounts and cash back on 2018 Silverado half-ton pickups and requiring no payments for 90 days as an additional sweetener.
While Chevrolet’s replacement for its full-size Tahoe SUV is still in the future, the division might be feeling a bit of heat from Ford’s redesigned Expedition and is offering discounts and rebates totally some $7,500 on Premier trim level models. The Bowtie division is also offering around $5,600 in cash on the 2018 Equinox, which was redesigned last year. Speaking of Ford, the Blue Oval has a program on 2018 Escape, Edge and Explorer crossovers which includes $1,000 cash and 0-percent 72-month financing. There’s also a $1,000 on the new 2018 EcoSport subcompact, but the 0-percent extends only for 60 months.
Toyota is pushing leases this weekend with a deal on its 2018 RAV-4 crossover for $209 per month on a 3-year contract with $1,999 due up front. The all-new RAV-4 will go on sale later this year. It’s also pushing its redesigned 2018 Camry with a $239 per month lease also for 3 years with $1,999, while the Tacoma midsize truck can be had for the same term and down payment at $299 per month.
Honda has been struggling somewhat with its redesigned 2018 Accord more because of the softness of the segment than a reflection on the product itself. Still, it’s offering a 3-year lease on the Accord for $249 per month and $2,399 due at signing. The Civic and HR-V crossover both have $189 per month 3-year leases with respective upfront payments of $2,199 and $2,299. Nissan is pushing a $4,000 rebate on 2018 Sentra models.
Ford scraps Focus Active for U.S.
Even before it’s gone on sale, the crossover-inspired Focus Active wagon has been scrapped by Ford for U.S. sale. Slated to be produced in China, the future model has been axed in the wake of threats of auto tariffs on imports from that country. That means the Focus line will cease to exist after the current model goes out of production here.
Even though the tariffs may or may not go into effect, Ford decided not to take a risk and simply pulled the plug on U.S. imports. According to Automotive News, Ford had planned to sell less than 50,000 of these vehicles per year.
"The impact to our future sales is expected to be marginal," Kumar Galhotra, Ford’s president of North America, said. "Our viewpoint is that, given the tariffs, our costs would be substantially higher. Our resources could be better deployed at this stage."
Despite all the tariff worries, Ford will continue to import the EcoSport crossover from India and the Transit Connect from Spain, Galhotra said. In a related move, General Motors has appealed to the U.S. government for a tariff exemption for its Buick Envision crossover built in China. That application is pending.
Monthly payments hit high
High transaction prices are translating into higher monthly payments as Experian reports that average monthly loan payments hit a new record in the second quarter. The firm reports that the average new-vehicle payments increased by 4 percent or about $20 to $525 over year earlier levels. Used-vehicle payments also increased by nearly the same amount 3.6 percent or $13 to average $378 per month. The average new vehicle loan amount is also up $724 from a year ago to $30,958, while used vehicle loans grew on average $520 to $19,708.
Despite these climbing payments, Experian’s Melinda Zabritski doesn’t see the trend as detracting from consumer preferences for more expensive vehicles, especially trucks and crossovers. “They’re still buying heavier vehicles, more expensive vehicles,” she told Automotive News. “Will there be a tipping point in new vehicles of consumer shifting into less expensive vehicles? Haven’t seen it yet.”
Contrary to the rising costs of monthly car payments, Experian has not seen an increase in delinquencies. Reports of 30-day delinquencies declined slightly from 2.2 to 2.11 percent. On-time payments are also helping improve credit scores, which also results in a drop in subprime and deep subprime lending, which has fallen to less than 19 percent of the nation’s total $1.1 billion of auto loan debt.
2019 Hyundai Santa Fe XL Priced
As part of the launch of the redesigned 2019 Hyundai Santa Fe, which essentially replaces the shorter 2-row Sport model, the Korean make has renamed the larger 3-row version the Santa Fe XL. It will be replaced by a new model next year wearing a different nameplate. Hyundai has announced pricing on the carryover XL, which will start at $30,850 for the SE front-drive model. All-wheel drive versions of the SE are priced from $32,600.
Other trim levels include the 2019 Santa Fe XL Limited FWD Ultimate, which starts at $39,550, while the AWD version goes for $42,300. Pricing includes $980 destination. In simplifying the lineup, Hyundai has dropped the SE Ultimate and SE Ultimate with Tech trim levels. All models are equipped with 3.3-liter V6 engines with 6-speed automatic transmissions. Hyundai has also upgraded the 8-inch touchscreen navigation system for faster response time and real-time traffic that doesn’t require a subscription.
The rundown
Considering the donation of your old car to charity? If you use the new donate option here at Kelley Blue Book through Sept. 30, we’ll give an extra $100 to St. Jude’s Hospital. Details here.
Chevy has added a new model to its Malibu line and swapped out the traditional transmission with a CVT. We get behind the wheel of the 2019 Chevrolet Malibu RS in this First Review.
That didn’t take long. Jeep has introduced its first special edition of its new Wrangler. Get the lowdown on the $52,695 2018 Jeep Wrangler Moab Edition.
In the market for a new car? Explore these useful tips on how to get the best deal:
Kelley Blue Book’s Complete Guide to Incentives
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