Incentives Making Comeback; Internationals Investing in Crossovers, Subcompacts

Washington DC May 2, 2006; The AIADA newsletter reported that as gas prices and interest rates continue to climb, dealers and automakers are starting to bring back buying incentives, reported The Wall Street Journal.

Some dealers are reviving the popular free-gas offers from the weeks following Hurricane Katrina, while others are looking to clear inventory of older models with zero-percent financing.

International automakers are also investing more in production of crossover vehicles. In addition, Toyota and Honda have launched new subcompacts, the Yaris and the Fit, which earn over 30 mpg in the city, according to the Journal.