GM starts their ‘red-tag’ year end event Saturday November 18th, and prices will continue until the January 2, 2007. Ford will offer an additional $1,000 off cars and trucks and offer 0% financing for 60 months on selected vehicles. Including existing rebates on the Fusion, Super Duty pickup, Escape SUV, Five Hundred sedan and Freestyle wagon, consumers can expect a total discount of $3,000.
GM will not extend its red tag clearance to their entire line. They will limit the incentives to Chevrolet, Pontiac, Buick, Saturn and GMC vehicles.
The motivation of GM and Ford is to 1) clear the lots of the existing line, 2) increase sales for fiscal year 2006 and 3) increase momentum going into 2007.
Both GM and Ford are recovering from a dismal October. In addition, GM is giving cash to dealers and letting the dealership decide where the discounts will go. Therefore, there is no blanket savings for any particular GM car.