Buick Enclave comes to market bearing $1,000 rebate

[bring_BUICK_back]

At first we thought it had to be a mistake. General Motors is already paying customers to take the 2008 Buick Enclave off their hands? It's not even on dealer lots yet, but Automotive News reports Buick is offering $1,000 "Conquest Bonus Cash" and 4.9% financing available on the $32k+ CUV.

Though the "Conquest Cash" is intended to draw non-GM-driving customers away from the competition, no matter the name, rebates on brand new vehicles are obvious admissions of overpricing that only enforce car shoppers' addiction to cash-back offers. If the Enclave performs as well and is as reliable as it is gorgeous, it shouldn't need any incentives.

On the other hand, a drop-dead body and cash back could be irresistable to all but the most diehard import buyer.

[source: Automotive News (Sub. Req.)]

Already proving what idiots they have running GM.....GM needs to be sold also just like Chrysler and Ford

[Drew Dowdell]

I would have liked to see a smaller amount.... but the idea is to entice soccer moms out of their RX330s and MDXes and into something classier. The Enclave is rather expensive, so $1000 isn't that much as a percentage of MSRP.

4.9% isn't that much of an amazing rate.... I can get 5% at the credit union.

[Windy-57]

Everyone on this forum went nuts when Toyota offered early rebates on the Tundra saying that it showed how Toyota had failed with the new Tundra. That wasn't true and it's not true that GM has failed with the Enclave.

Incentive has become a dirty word in Detroit, but there is nothing wrong with using some short-term cash back as a marketing tool. The issue comes when you have to rely on the incentives and consumers start waiting for the "next big deal."

Don't forget, GM doesn't want to sell Enclaves to potential Acadia buyers, they want to sell Enclaves to potential RX and MDX buyers.

Edited April 16, 2007 by Windy-57

[Drew Dowdell]

$1,000 on a $32,000 vehicle < $3,000 on a $22,000 vehicle

[Windy-57]

$1,000 on a $32,000 vehicle < $3,000 on a $22,000 vehicle

True, but I think you'd have a hard time making a case that Toyota relies on incentives more than GM. The fullsize pickup segment is probably one of the most staunchly patriotic segments in the market and even if the new Tundra was the best truck of all time (which it's not) they would still have trouble making serious headway into the segment. At some point they determined the best way to do that was by dropping some big cash on the hood to give it a start, get some hardcore truck buyers to take a chance on Toyota and save a few bucks and that would generate the type of word-of-mouth advertising that could help them sell the 200K per year they were looking for. Time will tell if the products is good enough to do this, but the strategy is there.

Same thing for the Enclave only CUV buyers aren't as set in their ways. All Buick needs is to get a few RX/MDX loyalists to take a chance and then hope the product holds up.

[Northstar]

I predict this incentive will go away soon. The Acadia had a $500 rebate at the start and now it has none. I don't understand why it would have an incentive at the start, unless they think that gets sales off to a quick(er) start.

[Flybrian]

Everyone on this forum went nuts when Toyota offered early rebates on the Tundra saying that it showed how Toyota had failed with the new Tundra. That wasn't true and it's not true that GM has failed with the Enclave.

There's also a difference in that the Encalve rebate is a conquest rebate; the Tundra rebates were to anyone and the kicker rebate was to their own dealerships.

[Drew Dowdell]

I predict this incentive will go away soon. The Acadia had a $500 rebate at the start and now it has none. I don't understand why it would have an incentive at the start, unless they think that gets sales off to a quick(er) start.

Put more of them on the road at the start to gain visibility.....?

[Windy-57]

There's also a difference in that the Encalve rebate is a conquest rebate; the Tundra rebates were to anyone and the kicker rebate was to their own dealerships.

I'm not saying that the Tundra is as good a truck as the Enclave is a CUV, it's not. I'm just saying that the usage of incentives in these cases seem to have the same intent. The Tundra has a bigger hill to climb trying to pry sales away from Silverado and F-Series buyers, thus the larger and more general incentives; as was just posted, get more on the road and gain visibility and talkability. It was just a bit premature to say the Tundra had failed becuase Toyota was offering it with incentives so soon after its introduction (Especially considering that GM is doing it with one of their most anticipated models). Now if Toyota begins to rely on those incentives to reach their sales targets, then it'll be fair to make those statements.

Also, I understand the idea of conquest incentives and I don't disagree with them, but didn't Buickman go off on these in a rant at one point saying that rather than rewarding buyers to come in from other brands, GM should reward long-term buyers by giving incentives to return buyers...just interesting that this is in stark contrast to that.

[Drew Dowdell]

The reward for Buick Rendezvous drivers buying an Enclave is the Enclave itself.....