Incentives, rebates, low interest rates may spur new car sales

By: Charlie Mathews, Herald Times Reporter

MANITOWOC — Bob Pietroske has been in the car business for 43 years. Last year wasn't the best, but the owner of Pietroske GM is optimistic and definitely not whining.

"Our business has been very good … I can't complain," Pietroske said Thursday. "I think we will have a great 2009."

New car sales were down about 10 percent last year compared to 2007 at Pietroske GM, First Chrysler, and Maritime Ford Lincoln-Mercury in Manitowoc and Krajnik Chevrolet in Two Rivers.

But a Manitowoc County economy stronger than many areas of the United States, as well as historic incentives and rebates, has Pietroske and other local executives believing customers will be stepping into their showrooms and driving new cars home.

Chilton's Tami Liebzeit likes the 2009 Acadia SUV she bought at Pietroske. "I checked prices and this was feasible," she said. "I was sick of driving my 1998 Pontiac Grand Prix in the snow."

While Liebzeit enjoys the hands-free phone calls she can make through the vehicle's stereo system, Brenda Novak also wanted more secure winter driving.

Novak doesn't think she'll get stuck in the snow with her new all-wheel drive 2008 Ford Edge from Maritime.

Novak intends to check out the Sync system, enabling drivers to call out the name of an album and specific song and have their iPod play it.

Bells and whistles may be of appeal to many prospective new car owners. But financial factors also may play well with customers.

"Many of the rebates are unprecedented to have them on new models … it's a great time to come in and make a deal," said Jamie Kornely, general manager at First Chrysler.

To clear lots of new 2008 models, some have rebates of up to $8,000. Chrysler's owner loyalty program results in an additional $1,000 to $2,000 on certain 2009 cars and trucks.

Kornely said "bonus cash" is available if owners finance through the dealership, and those obtaining loans through credit unions also qualify for a rebate. "Chrysler is designing programs that pretty much make everybody eligible for something," he said.

Feds helping car industry

"I think the federal government is trying to spur the economy through the automobile industry," Kornely said, with the Bush administration offering a $17.4 billion rescue plan.

He said Congress may consider legislation allowing for deductions of new car sales taxes and car loan interest.

"Ford is offering employee pricing through Tuesday," said Steve Lauson Jr., Maritime president and co-owner.

The purchase price is even lower than his dealership's own ongoing commitment of selling cars for one percent over invoice.

"That's just fine with me," said Lauson, noting new car owners also are eligible for various rebates on top of the discounted price. A popular new vehicle is the redesigned F-150 truck.

General Motors' loyalty program for previous brand buyers can result in a $1,000 to $3,000 savings on a new car, said Jerry Brickner, general manager of Krajnik Chevrolet.

Rebates that might spur additional sales also are in place, including $3,000 on a Chevy Trailblazer.

Brickner said users of GM credit cards are having extra points added to their accounts, which can result in discounts on new cars and trucks.

He said many buyers will qualify for 60-month car loans at 3.9 percent.

Pietroske believes many national media stories have painted a bleaker picture of the domestic car business than is reality.

Brickner would agree. "I'm excited about 2009 and looking forward to what's going to happen," he said.

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