Top Cash-Back Car Deals

Top Cash-Back Car Deals

Hannah Elliott,01.09.09, 12:20 PM EST

Battered dealers this month are offering unheard-of buyer incentives.

In Depth: Top Cash-Back Car Deals

The retail industry isn't the only one luring shoppers withhefty discounts. Battered car dealers this month are offeringunheard-of cash-back deals--in some cases up to 30% off the MSRP.

Detroit'sBig Three in particular are offering buyers thousands of dollars incash, including $8,000 in total rebates to qualified buyers of Chevrolet's Tahoe and Suburban models. Those who buy a 2009 Mercedes CLK get $6,000 cash back. Drive off with a 2008 Saturn Vue XE and pocket $3,750. To expedite the sales process, cash-back incentives are usually applied directly to the purchase price.

n short, there has never been a better time to buy a new car.

In Depth: Top Cash-Back Car Deals

But don't get too comfortable with all that green. Automakers--notably Chrysler and General Motors (nyse: GM - news - people )--willlikely put the brakes on their incentive offerings this spring as the$17.4 billion rescue package begins to lessen their financial strain.

"Thesedeals won't be as plentiful going forward, as lots of the '08 stockwill be done in '09," says Jessica Caldwell, manager of pricing andindustry analysis for auto data source Edmunds.com. "There probablywon't be a time as good as this. Things will plateau, and there willstill be a lot of deals available, but it's going to look a little lessrosy."

Behind the Numbers
To find the best cash-back deals available, we used data from Edmundsand Cars.com, a Web site that provides auto advice. We sifted throughincentives offered on thousands of 2008 and 2009 models and thenselected vehicles with a high ratio between the amount of cash offeredand the vehicle's MSRP. A cautionary word: Incentive programs vary byregion and state, and many expire quickly.

Dealerincentives from manufacturers to dealerships reduce a dealer's cost ofbuying the car from the factory and are offered on a regional basis togenerate sales on specific models. Customer incentives involvecash-back rebates, low-interest financing or other perks offereddirectly to buyers.