As Detroit remains bogged down in the Russian winter of their hubris and mismanagement, Nissan is launching a counter-offensive. Not only is Nissan joining Toyota in launching zero-percent financing on select models, they’re even launching factory leases at a time when nearly every finance company is running away from the lease business screaming. Automotive News [sub] reports that zero-percent financing is available on Altima, Rogue, Sentra, Versa and Murano, with all the “qualifying buyers” mumbo-jumbo that could keep many from the deal. Nissan is also launching factory-subsidized $199-a-month leases on the Altima sedan and Rogue, as well as extending a $339-a-month lease offer on its newly redesigned Maxima. If you just want a deal on basic transportation and don’t care much about financing, Nissan is also rolling out a stripped Versa sedan with a MSRP under $10k. “We are making a bold statement to our customers and to our dealers that we’re here for them,” says Nissan Division Vice President Al Castignetti. “If you need financing, we have it. If you want to lease a vehicle, we have it. If you need to buy an inexpensive car, we’ll have it for you.” While feasting on the dying corpses of the Detroit Three.
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Technically, aren’t corpses already dead?
As for the 10k car… isn’t it pointless? Consumers should just get a solid 5 yo Camry for that much, and it’ll have A/C and color-keyed mirrors/handles and neat stuff. :D
As for the 10k car… isn’t it pointless?
What’d be pointless is yet another discussion on the new vs used, and their corresponding pros and cons.
Part of this is a response to the market contracting, part of it has to be the smell of blood in the water to finish off one of the competitors. If I was not GM/Chrysler I’d put my foot on the accelerator with knowledge that a whole lotta people still buy GM and Chrysler cars and you could concievably pickup 5-10% of the total market if they enter bankruptcy.
What kind of beast you’d have to fight post chapter 11 is speculation for another day.
point given:
well put.
a new customer today will be more likely to also buy your product in 3-5 years…
this is one of the few reasons people bought light cars (compact, mid-size, family…) from the domestics over the past 15 years…
Maybe Nissan considered the costs and risk of digesting Chrysler and concluded they would be better off spending a fraction of that money buying some customers instead.
$10k will also buy you a new Jeep Grand Cherokee Limited 4X4 with leather, five to choose from! Is that crazy or what? It almost makes me want one!
http://newspaperads.mercurynews.com/ROP/ads.aspx?advid=731755&adid=7135067&subid=24172506&type=
John Horner—- $10K is the net savings
mfgreen40 : Ah, right you are. Fooled by misleading advertising I was, read more carefully I must!
I think it is very smart move on Nissan part. During recession (or depression) there will be not a lot of car buying. If you own a car you most likely not going to replace it until economy get healthier. If you lease a car and lease is up you either will try to re-lease your “used” ride or get a cheaper lease. However, GM will not be able to help you. If hard core domestic loyalist you run to the bank for financing (do banks even do auto leases?). Basically you are screwed or come to Nissan and get cheap wheels and financing.
Downside: if recession continues and lessors start either loosing jobs or simply skipping payments, Nissan may find itself wearing GM shoes.
If the 10k car had a/c and automatic standard on it, that would be an offensive.
As it stands it doesn’t. The 1.6L engine will be adequate. But the lack of a/c or an automatic makes it a non-starter in most of the United States. It’s a shame because a new $10k car that can get nearly 40 mpg, has good safety, and can handle most family needs would be a great offering these days.
The 5-speed will limit it. No a/c? That makes it Nissan’s version of a base Kia Rio. Those don’t sell. Like most other sub-$10k cars, you can expect even a ‘recession edition’ Versa to go out the door for a bit over $11k due to the addition of a freight/destination charge (that’s extra), bogus dealer fees (ditto), and sales tax (ouch!).
Here’s what ‘she’ said…
Nissan North America, Inc.
(NNA) today announced a new 2009 Nissan Versa Sedan 1.6 model, which
features a starting Manufacturer’s Suggested Retail Price (MSRP)* of
$9,990* (excluding Destination and Handling). The new Versa focuses
squarely on value and fuel economy, with its standard 107-horsepower DOHC
16-valve 1.6-liter inline 4-cylinder engine delivering responsive
performance and a 34 mpg highway fuel economy rating (with the 5-speed
manual transmission).
The Versa Sedan 1.6 goes on sale at Nissan dealers nationwide beginning
November 18, 2008.
Ed, Picture choice is f’ing brilliant.
I can’t imagine Nissan’s making any money on the sub-$10k Versa, it’s just a stunt to get people in the door.
A few years back my parents bought a Chevy Cavalier with manual windows & door locks (auto trans, though) for under $10k, it was one of the advertised “only 1 available” teaser deals. They got there just as the dealership opened and once the salespeople realized that’s the only reason there were there, made a very begrudging sale (they offered something like $300 as a trade-in for their Ford Escort)
The manual + no ac would work well as a commuter, IMHO, esp under $10k.