Consumer Reports Cars: Year-End Incentives Not Always a Good Deal

Short-Term Savings Can Be Long-Term Expenses

YONKERS, N.Y., Dec. 21, 2006; For new-car shoppers, 'tis the season to be jolly as attractive year-end deals could save buyers thousands of dollars. But not all deals are created equal, warns Consumer Reports, the country's largest and oldest consumer-product testing organization.

Now could be a good time to buy as manufacturers look to clear inventories and dealers aim to meet sales quotas. Many 2006 models -- and some 2007s -- are being offered with up to $7,000 in rebates and incentives. However, deals are seldom offered on the most popular models. In addition, a vehicle with poor reliability could end up costing much more money and time in the long run.

"A good deal on a bad car is no deal at all," said Rob Gentile, senior director of Consumer Reports' Auto Price Service. "For example, the upscale Land Rover LR3 is being offered with a $6,000 rebate, but reliability is well below average with owners reporting a wide range of problems." Gentile pointed out consumers should look for vehicles recommended by Consumer Reports. Recommended vehicles performed well in Consumer Reports testing and are ranked high in both safety and reliability.

Below is a short list of Best and Worst deals of the season. A complete list is available online at http://www.consumerreports.org/. All Best deals vehicles are recommended by Consumer Reports. The Worst deals list consists of models that carry significant discounts, though do not meet the stringent criteria to be considered Consumer Reports recommended. All models are 2006 model year unless otherwise noted.

      BEST DEALS (Total Incentives/Pct. of MSRP)
      2007 Mercury Grand Marquis ($6,500/24%)
      Dodge Durango ($7,000/21%)
      Saab 9-2X ($5,000/20%)

      WORST DEALS (Total Incentives/Pct. of MSRP)
      Nissan Armada ($3,000/8%)
      Dodge Charger ($3,000/10%)
      Nissan Quest ($3,000/11%)

New-car shoppers will also find helpful Consumer Reports' exclusive Bottom Line Price information, the starting point from which price negotiations should move up. The Consumer Reports Bottom Line Price is part of Consumer Reports' New Car Price Service, available at http://www.consumerreports.org/autos.

Twenty years ago Consumer Reports was the first major information provider to give consumers a glimpse beyond the MSRP, or window sticker price. Today, Consumer Reports is providing consumers with information on what dealers actually pay for a new car and its options and packages -- net of incentives, rebates, and hold backs the Bottom Line Price equips consumers to negotiate a fair price.

Consumer Reports is one of the most trusted sources for information and advice on consumer products and services. It conducts the most comprehensive auto-test program of any U.S. publication or Website; the magazine's auto experts have decades of experience in driving, testing, and reporting on cars. To subscribe to Consumer Reports, call 1-800-234-1645. Information and articles from the magazine can be accessed online at http://www.consumerreports.org/.