They're this year's hot vehicles. But as the effects of the financial crisis deepen, even small and midsize cars are seeing declining sales -- and that means better deals for prospective buyers.

Manufacturers had generally pulled back on incentives for smaller vehicles this year, after record-high gas prices spiked demand. And the discounts still aren't as juicy or widespread as those on fuel-thirsty sport-utility vehicles, or even car-based crossovers. But customers can now get good deals -- including cash-back offers, low-interest-rate financing and lease specials -- on some best-selling cars. And they have newfound leverage when negotiating with dealers, many of whom are desperate to move vehicles off their lots.


The best deals will likely be found on cars made by General Motors Corp., Ford Motor Co. and Chrysler LLC, as Detroit has suffered the worst of the sales downturn. The Big Three have also had trouble in recent years competing with Asian and European auto makers in small and midsize cars.


Shoppers can get back between $500 and $3,500 on some cars and will see financing rates below 2% on both 2008 and 2009 models. Some auto makers are offering 0% financing deals, and even some luxury brands are being discounted now, as a broad downturn takes its toll on the entire industry. Auto sales tumbled 27% in September, according to Autodata Corp., amid the nationwide credit freeze and other economic strains.

Source: Wall Street Journal