Yesterday, we took a "Whose Fault Is It Anyway?" look at consumers who used carmaker's easy credit to buy (in the ironic sense of that word) vehicles they couldn't afford. Today, the San Antonio Business Journal reports that The Alamo City guv'mint has teamed-up with Ford "to make it easier for more working individuals and families to buy a new or used car." Here's the deal: low income buyers save up $1000. FoMoCo and San Antonio's Department of Community Initiatives match the buyer's grand with two more, creating a $3k down-payment towards a new or used vehicle from one of eight participating Ford or Mercury (!) dealers. To qualify for the "down payment assistance program" the buyer's income must not exceed 300 percent of the federal poverty level (that's $61,950 for a family of four). Applicants must also be a San Antonio resident, an insurable driver, not have declared bankruptcy within the last seven years and be "current" with all creditors. (Driver's license?) Oh, and they have to qualify for financing. Welcome to America! 

So, GM's toe-dip into web 2.0 yielded its first on-line chat in its "virtual media forum." The General's Web Slingers tapped GM Director Vehicle Emissions Issues Bob Babik for its inaugural e-chin wag. In case you thought GMNext was all about the glasnost, please note the word "media" in the title. As far as we can tell, only three (non-TTAC) members of the press were allowed to put questions to Mr. Babik. And either the transcript has been heavily edited or it was the world's shortest live chat. And yet there's still a gem or, uh, well there's a gem. “The key is offering technology at a cost-effective level so that the consumer values it and makes that choice," Babik e-opines. "This is why in the early years of a certain technology, GM supports government incentives when the technology may be more costly to help consumers make that choice.” Did any of GM's pet journos explore this issue? What kind of financial support was he talking about? For what? To whom? How much? If the journos did what journos are supposed to do, GM ain't sayin'. And there you have it: proof (if proof were needed) that GMNext is the same old you-know-what in a new wrapper. 

As reported here, parity between the U.S. greenback and the Canadian loonie has left many Canadian car buyers with a serious case of sticker shock. To rectify the disparity between U.S. and Canadian prices (albeit belatedly and reluctantly and only after a flood of cross-border shopping and probably more for their dealers' benefit than their customers), Chrysler and Porsche recently lowered their prices north of the border. GM is taking a different route, one with which they are no stranger: incentives. GM Canada has announced cash incentives ranging from $1.5k to $10K and a one percent reduction in the GST (Goods and Services Tax) two months before the government is scheduled to lower the tax. The press release doesn't say how long the incentives will remain in effect. Why incentives rather than price reductions? Incentives can be quietly phased out or terminated while raising prices after a few months would draw unwanted attention to the price "adjustment."

Looking back over last month's US sales stats (Frank Williams is readying his BTN analysis), it's easy to see that healthy sales of full-size pickup trucks have helped stave-off a radical downturn in The Big 2.8's fortunes. The Wall Street Journal reports the trend may be only a temporary reprieve from a generally declining automotive market, with a major reckoning dead ahead. Industry experts from within and without suggest that increased competition (i.e. an industry average of $4k in sales incentives per truck) has created an artificial and unsustainable market. "We're all watering down this truck market," Ford sales-analysis manager George Pipas told the Journal. "There's only so many buyers here, and we're not going to get more buyers from Mars." Pipas predicts a "rough fourth quarter" and says all the discounts, incentives and special financing lavished on pickups will end in tears. "Payback is inevitable." Given The Big 2.8's ongoing reliance on pickups for profits, Pipas might have also observed that payback is a bitch.

If you're trying to decide whether or not to buy a new car, the Wall Street Journal has a bit of advice: wait. Citing experts from Consumer Reports and Edumunds, they're projecting increased incentives as sales continue to drop and the model year winds down. They also note that some of the 2008 models are being introduced with incentives already attached, which is good for you, bad for their makers. If that bit of advice isn't enough to send the beancounters at The Big 2.8 and Toyondissan running for the Excedrin, their conclusion surely will: "Then again, given the prognosis for the housing market and its effect on consumer budgets, it might simply be wiser to wait. If you've had your car for five years or less, chances are it still has many healthy miles ahead."

General Motors is offering interest-free financing on new Buicks. But don't bundle up grandma and grandpa and trundle down to your local Enclave emporium. You'll have to go to China to take advantage of this deal. Bloomberg reports GM has the dubious honor of being the first automaker in China to cave to competition and offer interest-free loans to try to bolster sales. The only stipulation is that the buyer has to make a 40 percent down payment. While that seems excessive on this side of the Pacific, banks there usually require 60 percent down for financing so it's a pretty good deal. Whether this will lead GM into an [all-too-familiar] incentive spiral is yet to be seen. But they may have taken the first step on that slippery slope.

If you had trouble figuring out GM's special offers, rebates, financing deals and incentives in the last post, fear not. It gets worse. Here's an email from a GM dealer. He calls the process "Figure It Out Before It's Over. "Fine print: good only in north central region, except Michigan, unless you live in the following counties… Loyalty programs available, but must have direct mail piece. So you ask the client if he's got one. If yes, where is it? If no, customer is pissed. Extra discount on interest rate for customer if dealer floorplans with GMAC. Extra rebate if old invoiced unit. Different amount depending on date of invoice. Tiered dealer cash by level of achievement toward objective. Different residuals if reg cab, ex cab, 2wd, 4wd, leather, cloth, 1/2 ton, 3/4 ton, manual vs. auto, V6 vs. V8. Riddle me this Batman: What incentive do you get on a GM car? Answer: it really doesn't matter because when you finally figure it out, it's changed anyway." 

A recent email from the increasing inconsolable Buickman (a.k.a. Jim Dollinger) had me shaking my head in disbelief. Buickman listed all the discounts available at your local GM store: AARP, GM Discount, Recent College Grad, Active Military, Olds Owner, Father who was a UAW Retiree, Owned Import Took Overnight Test Drive, Incremental Allowance, Bonus Cash and Matching Down payment. Our own Frank Williams says The General's also offering up to three percent against vehicle purchase on GM's Flexible Earnings credit card, special financing offers ranging from 0% to 4.9% and up to $5000 cash back (depending on the model and trim level). Oh, and don't forget regional deals. NOW how much would you pay for that Chevy Silverado? Hell if I know.