Pontiac, Saturn Go on Fire Sale

Vibe
With the fates of Pontiac and Saturn sealed, GM will face the prospect of moving the last vehicles of those brands off lots, and that’s good news for consumers. The automaker will offer extremely nice incentives to put you in a car from one of the discontinued brands.

This could both inflate GM’s December sales and cut the cost of a Pontiac or Saturn vehicle by as much as 46% off the sticker price.

The end-of-brand fire sale was sparked by a Dec. 23 letter sent from GM to its dealers saying it would pay them $7,000 for every new Saturn or Pontiac that is moved to rental-vehicle or service-vehicle fleets of the dealers. The vehicles then would have to be described as used to customers because the dealer will technically be the first owner. But the discount could still be tremendous.

The cost of the program to GM will be considerable, and Ward’s Auto estimates that as of December, GM still has 14,500 new Pontiacs and Saturns on the lots. GM has not commented on the financial impact. All deals on parts, service and warranties remain covered by GM.

If you’re looking to capitalize on the deal, you’d better hurry. The offer expires Jan. 4, the last day of the December car-sales month.

GM Plans Pontiac Fire Sale (Wall Street Journal)

Comments 

segfault

At this rate, GM will need another infusion of taxpayer cash in short order.

H

This deal is only marginally better than current incentives but now you are buying a used car instead of a new car and paying more for financing as a result.

Derrick G

Looks like they'd be doing better to try to dump them into daily rental fleets of companies that specialize in such, like Enterprise.

d

i am surprised but never seen a G8 or Astra in rental lots.

Zack

All the current vibe and G3 owners who paid near sticker price this year are really going to feel good when they see their respective cars selling for 10k and 6k under these incentives. There's gonna be some sweet deals on the Saturn Aura too, and that's a car people actually might want.

Mason

First off don't assume that just because GM is offering dealers $7g that it'll be passed along to you the consumer. Secondly in order for the dealer to qualify for the $7g they have to transfer the car title to themselves effectively placing the car and it's title in fleet/rental status. When you buy the car you'll be the second owner - not the first. With GM's already abysmal resales values this second title status will further reduce the vehicles value. When you crunch the numbers you are better off buying a Honda, Subaru, or Toyota.

Zack

Masonite,
I thought the vibe was a toyota. And I saw g3s advertised in the paper this week for 7995,so the discounts are already happening.

H

$6500 cash incentive has een in place for a few weeks now.

Zack

H,
Thanks for the info. That explains some of the prices I've been seeing. It will be interesting to see how much of those savings are passed along on these "barely used" cars.

J

Actually, just rented a Vibe from Enterprise last weekend. Gotta tell you why I would take the Matrix over it anyday

Korlyn

This video by GM sums up why I would never consider buying a GM product. Trash is trash regardless of how they package it.

http://www.youtube.com/watch?v=xvwTMZNWGuk

Thomas

Zack,
The Vibe has a Toyota drivetrain because GM is incapable of making a quality one themselves. Other than that the Matrix is a far superior car and the facts on selling price, reliability, and resale value bear this out. Of course you'd know this if you knew anything about the car marketplace.

Ken L.

Wow, on the face of it, this sounds like a super deal!  However, as with all things GM, there's more than meets the eye.  This isn't just about moving discontinued brands, it's about GM circumventing the new car warranty.  Think about it for a second -Instead of a 3 or 5 year warranty on a new car, you're getting what used cars normally go for; which I believe is 90 days, unless it GM Certified –which I believe it won't be.  Warranty cost is a huge expenditure for any automobile company, but for GM, it's probably much higher.  If you are truly interested in this promotion, I'd suggest paying a few hundred dollars more and get it "Brand New".  You'll be getting the exact same car, for slightly more, but with a new car warranty.

H

You are assuming the warranties aren't transferable.

Zack

Wow you're a real glass half empty kind of guy Thomas. I guess you won't be buying one of the specials. I have to laugh at people like you who pontificate about how GM has to depend on Toyota to build its engines. Why did toyota license the Chevy inline six engine design and use it in its most expensive vehicle, the Land Cruiser, until 1994? Why does GM build the V8 engine that can run as a four cylinder, allowing the vehicles that use it to get superior mileage to Toyota, which hasn't mastered that technology for its pickups. If you knew anything you wouldn't have made such an uninformed comment right?

Promote your site or blog on f9book.com

Zack

Consumer Reports gives the Pontiac Vibe its highest reliability rating for the years 2003 to the present, so comments that the Matrix is a better car are wrong - vibe and matrix are the same car, except the vibe will be thousands less with the new rebates.

Wow what a cool car. I wish one day we move from our old honda car to such Luxurious car.

Christopher

Last time I checked Toyota had a stock price and GM had none. GM drinkers need to sober up and realize that Toyota won. GM cant play with the big boys that's why the Big 3 is now the Big 2 - Ford and Toyota. Most folks have known for quite some time that Toyota is more American than GM. Just compare the content % of the Camry vs Malibu. No contest.

Major Fahrter

So pay $7,000 more for the Toyota that isn't badged as a Pontiac, moron.

Ian

I just bought a Vibe and can attest the price difference between the Vibe and Matrix is not $7,000. I had to drive 150 miles to get my Vibe as inventory levels are really low but I got mine for $3,400 less than a Matrix. Only time will tell if the Vibe proves to be worth the $3k savings but I've already noticed the interior isn't as nice as the Matrix. I can live with that.
$7,000 difference!? - You are a dope.

H

Ian,

Your dealer is thanking you for being a sucker. $6500 rebate on all new vibes for the last few weeks so if you only paid $3400 less then you didn't get a good price pre-cash back. The interiors are identical except for the arrowheads and the oval T.

Hybrit

Well said, H. There is zero difference between the Vibe and Matrix. To Zack's original point, the smart money will scoop up any available matrix around.

Hybrit

Oops, I meant any Vibe around.

Zack

There are 16 Pontiac G8 GXP's left in the US. It has a 402 hp Corvette engine and for the price of a stupid Audi A3 (32K) you can have an instant collectors item that will outperform any BMW or Audi.

jd

Smart educated money does indeed buy the Matrix as it's a better car hands down. Having first bought a Vibe and then a Matrix I experienced first hand the lousy depreciation factor of the Pontiac brand - and this was before the brand was rightfully eliminatd! If you can live with the cut every corner cheap GM interior then go with the Vibe. I was lucky enough to have my Vibe totalled by a delivery truck so the second time around I opted for quality instead of a cheaper imitiation. There's a reason Toyota builds the Matrix in a separate factory - it's called quality.

YOING

jd, the Vibe and Matrix both came from the (now defunct) NUMMI plant in California that was a GM/Toyota joint venture. Quality for both should be equal.

In my experience, these are reliable, decently built but when something breaks I can always trace it back to the GM end of the design. It's still Pontiacs most reliable and best built product. (The G8 is too new to assume).

Zack

Well said, Yoing.

boeingboy

JD,
Take a look at the links below.
http://www.samarins.com/reviews/vibe_int.jpg
http://www.samarins.com/reviews/img/2006_matrix_interior.jpg
The first link in the Vibe interior, the second is the Matrix. They are the same interior, built in the same factory. I know this because I own an 05 Matrix and my friend has an 06 Vibe. The only difference I noticed is the stereo and a trim piece near the hazzard light button.

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