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The $34,000 Buick Encore GX has arrived to take on Mazda, Toyota, and Honda — but we should really be matching it up against BMW

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>Crossover SUVs are the hottest segment in the car business right now, and an especially appealing subset of the segment is small utility vehicles. </p><p>These are the new entry points to brands; it used to be that small sedans were the starter cars. No longer.</p><p>Luxury and near-luxury brands are both jumping in. BMW has the X1 as its entry level crossover, and Buick has the Encore. This isn't going to be an apples-to-apples comparison, by the way.</p><p>The Bimmer is a true luxury brand, while Buick resides below Cadillac in the <a href="http://markets.businessinsider.com/stock/GM-Quote" target="_blank">General Motors</a> hierarchy.</p><p>But the two vehicles, separated by price - more than $10,000, in fact - can be usefully compared. Both provide good utility, have about the same amount of passenger and cargo space, come equipped with a nice lineup of tech features, and can even be compared in terms of how they drive.</p><p>The biggest difference is really one of impressions and expectations. The BMW is supposed to be the small-crossover version of the "ultimate driving machine."<div class="KonaFilter image-container display-table float_left"><div><div class="image on-image"></div><p></p></div></div></p><p>The Buick, on the other hand, needs to bring younger buyers into the brand and not deviate too much from what makes a Buick a Buick: quietness, composure, and low-key style.</p><p>So what we ultimately have here is a pair of vehicles equally burdened by their respective automotive DNA. The BMW, for example, needs to satisfy the person behind the wheel. The Buick needs to soothe the driver. The BMW has to carry a certain amount of design weight - this crossover needs to fit into the BMW family, which includes the X3 and the X5. </p><p>The Buick has to exude some of the Tri-Shield's unforced elegance and country-club vibe without coming off as stuffy. Buick has done yeoman work in the last decade changing the idea that its cars are strictly for the retirement-community demographic. </p><p>So the two crossovers are easier to compare than it appears.</p><p>And there might even be a surprise or two about the one we liked better.</p>

The BMW X1 takes on the Buick Encore in a battle of the small SUVs

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><p class="source"><span>Matthew DeBord/BI</span></p><p class="caption">The Bimmer.</p></div><p></p></div></div>Crossover SUVs are the hottest segment in the car business right now, and an especially appealing subset of the segment are small utility vehicles. </p><p>These are the new entry points to brands; it used to be that small sedans were the starter cars.</p><p>Luxury and near-luxury brands are both jumping in. BMW has the X1 as its entry level crossover, and Buick has the Encore. This isn't going to be an apples-to-apples comparison, by the way.</p><p>The Bimmer is a true luxury brand, while Buick resides below Cadillac in the <a href="http://markets.businessinsider.com/stock/GM-Quote" target="_blank">General Motors</a> hierarchy.</p><p>But the two vehicles, separated by price - more than $10,000, in fact - can be usefully compared. Both provide good utility, have about the same amount of passenger and cargo space, come equipped with a nice lineup of tech features, and can even be compared in terms of how they drive.</p><p>The biggest difference is really one of impressions and expectations. The BMW is supposed to be the small-crossover version of the "ultimate driving machine."<div class="KonaFilter image-container display-table float_left"><div><div class="image on-image"><p class="source"><span>Matthew DeBord/BI</span></p><p class="caption">The Buick.</p></div><p></p></div></div></p><p>The Buick, on the other hand, needs to bring younger buyers into the brand and not deviate too much from what makes a Buick a Buick: quietness, composure, and low-key style.</p><p>So what we ultimately have here is a pair of vehicles equally burdened by their respective automotive DNA. The BMW, for example, needs to satisfy the person behind the wheel. The Buick needs to soothe the driver. The BMW has to carry a certain amount of design weight - this crossover needs to fit into the BMW family, which includes the X3 and the X5. </p><p>The Buick has to exude some of the Tri-Shield's unforced elegance and country-club vibe without coming off as stuffy. Buick has done yeoman work in the last decade changing the idea that its cars are strictly for the retirement community demographic. </p><p>So the two crossovers are easier to compare than it appears.</p><p>And there might even be a surprise or two about the one we liked better.</p>

We pitted the BMW X1 against the Buick Encore in a battle of the small SUVs

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>On Tuesday, General Motors unveiled its next generation mid-size Buick Regal.</p><p>And in a stunning departure from the status quo, Buick's sleek new model will come in two very distinct flavors - The Regal Sportback and the Regal TourX.</p><p>First, there's the Sportback. The sleek five-door hatch features a distinctive coupe-like fastback roofline in a package that's designed to couple looks, sports sedan performance, and crossover utility.</p><p>But, the biggest news comes in the form of the Regal TourX. It's the latest in a long line of great Buick wagons - this time with a much more rugged feel.</p><p>"Regal TourX is a crossover in the truest sense of the word, with the drive dynamics of a car and the versatility of an SUV," Buick boss Duncan Aldred said in a statement. "Additionally, it continues a trend set by the Cascada and Encore of bringing Buick's contemporary design and attainable luxury credentials to new segments where customers are looking for more."</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"></div><p></p></div></div>As a result of its crossover designation, the TourX is physically very different from its Sportback sibling. The Wagon is 3.4 inches longer, an inch taller, and has a more pronounced rear greenhouse than it's coupe-like counterpart.</p><p>Differences aside, both have been created to accomplish a singular mission- take on the Germans.</p><p>While the Sportback's target is the Audi A5 Sportback and the BMW 4-Series Gran Coupe, the TourX will be aimed directly at Audi's superb A4-based Allroad wagon and the BMW 3-Series Sportwagon.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"></div><p></p></div></div>Like the previous generation Regal, the Sportback and the TourX both feature a heavy dose of Teutonic DNA from GM's now-departed Opel division. In fact, both Regal variants will be built in Germany and imported into the US. </p><p>To do battle with Audi and BMW, Buick has armed both variants with a 2.0 liter, 250 horsepower, turbocharged inline-four-cylinder engine coupled with an 8-speed automatic transmission and an advanced twin-clutch all-wheel-drive system. The Sportback is also available in front-wheel-drive guise with a 9-speed automatic. </p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"></div><p></p></div></div>In addition, both versions of the Regal will get GM's industry-leading infotainment system with OnStar, full Apple CarPlay/Android Auto comp ability, and 4G LTE connectivity running through an available 8-inch touchscreen. display. </p><p>Further, the 2018 Regal is available with a complete suite of driver's assistance features including adaptive cruise control, lane-keep assist, and pedestrian braking. </p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"></div><p></p></div></div>The Regal also gets Buick's new active hood pedestrian safety system that lifts the back of the hood up 4 inches using a pyrotechnic actuator when the car senses it is about to collide with a pedestrian while traveling between 16 mph to 30 mph.  The system is designed to mitigate trauma caused by the impact on the pedestrian.</p><p>Performance figures and official pricing for the Regal Sportback and TourX are not yet available. Both versions of the 2018 Buick Regal are expected to arrive in showrooms in the fourth quarter of 2017. </p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/robert-shiller-fed-trump-yellen-next-fed-chair-ron-paul-2017-3">Robert Shiller on what a rate hike will do to asset prices and who Trump shouldn't put in charge of the fed</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="51azZjYTE6-H3wQ3nvdzT7Jr4PEvtoW3" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

Buick's new Regal is primed to take on Audi and BMW

<p><strong><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Matthew DeBord/BI</span></p><p class="caption">Wouldn't you rather have a Buick?</p></div><p></p></div></div></strong></p><ul><li><strong>The <a href="http://www.businessinsider.com/category/buick">Buick</a> Enclave was the right car at the right time for the brand a decade ago.</strong></li><li><strong>I tested the highest trim level of the all-new crossover.</strong></li><li><strong>I haven't always been the biggest Enclave fan, but I enjoyed the updated version.</strong></li></ul><p>The Enclave is possibly the most important Buick of all time.</p><p>Before you chuckle at that statement, consider that in 2007, when the Enclave first hit the streets, parent company General Motors was headed for a federal bailout and bankruptcy as the financial crisis hit and decimated the US auto market. </p><p>Buick as a brand was also in pickle back then: the original GM marque was thought by many to be headed for that great dealership in the sky, the next in line after Oldsmobile. As it turned out, GM kept Buick alive, putting Pontiac out of its misery instead. </p><p>The Enclave's timing was, ironically, perfect. Buick lived because it's a big brand in China - GM couldn't afford to lose it in what would become the automaker's largest market. And as the Great Recession receded, US buyers took a serious shine to crossovers - SUV-size vehicles with car-like features and driving dynamics. Enclave was an immediate smash.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Matthew DeBord/BI</span></p><p class="caption">The car that saved Buick.</p></div><p></p></div></div></p><p>GM completely redesigned the vehicle for the 2018 model year, and in a new move, created a sub-brand for Buick: Avenir. The idea was to mirror what sister brand GMC had done with Denali, which was to tap into a higher level of the near-luxury market. </p><p>In January, Buick flipped us the keys to an Enclave Avenir, and I spent a week driving it around its natural stomping grounds: the suburbs of New Jersey. To be honest, I've never been huge Enclave fan, but I was excited to sample the redesigned vehicle. It's an important product for Buick, which says Enclave sales peaked in 2014 and '15, the slip in '16 and '17 as the crossover grew long in the tooth.</p><h2>This Buick ain't cheap</h2><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Matthew DeBord/BI</span></p><p class="caption">Sleek and stylish.</p></div><p></p></div></div></p><p>Our tester stickered at about $59,000. It was very nicely equipped, with the Avenir goodies and all-wheel-drive. The base Enclave can be had for around $40,000. The Avenir trim is certainly worth a look. You could easily consider it a competitor to the likes of the Volvo XC90 and the Audi Q7, just at a near-luxury rather than true luxury price.</p><p>Basically, in the somewhat vague near-luxe realm, the Enclave Avenir about the best you can get. In fact, as Buick's flagship SUV, it rules its domain - admittedly, one that is less crowded than it once was, as brands such as Saab and Mercury have exited the stage.</p><p>Logically, Enclave goes up against crossovers from Acura and Infiniti, the "tier two" luxury brands from Honda and Nissan. But those brands also compete with Cadillac, GM's proper luxury badge, and Ford's Lincoln brand, so in a weird sort of way Enclave has space to itself. For Buick, this isn't a bad thing, as the division ha succeeded in appealing to younger buyers in affluent parts of the country, including the Southwest and the Northeast, traditionally bastions of the Japanese automakers and the German brands.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Matthew DeBord/BI</span></p><p class="caption">Some Avenir branding.</p></div><p></p></div></div></p><h2>An easy crossover to like</h2><p>There isn't much to dislike about the Enclave, if you're buying it to haul around a family in style. Buicks are sharp (although Enclave lacks the iconic "ventiports"), and the crossover has a true third row, enabling reasonable seating for seven grownup humans. The interior is premium without being as luxurious as, say, a Mercedes. And the 310-horsepower 3.6-liter V6 is a dandy motor, delivering a 0-60 mph dash of about six and a half seconds. The nine-speed automatic is pretty smooth-shifting, and fuel economy is fine for a large, heavy vehicle that can two 5,000 lbs. if properly equipped: 17 mph city/25 highway/20 combined. </p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Matthew DeBord/BI</span></p><p class="caption">Nothing too fancy here, but nice materials.</p></div><p></p></div></div></p><p>The driving dynamics are quite soft, and that's what I've typically not liked about the Enclave. Somehow, the suave, quiet performance doesn't bother me in Buick sedans. But the Enclave really takes all the edges off, a quality I didn't find as much in evidence when I sampled the brands two other crossovers, the small <a href="http://www.businessinsider.com/bmw-x1-vs-buick-encore-crossover-2017-2">Encore</a> and the mid-size <a href="http://www.businessinsider.com/buick-envision-review-photos-2017-2#so-how-did-the-envision-do-36">Envision</a>. </p><p>Design-wise, the Enclave is elegant, well-tailored - it doesn't advertise its bulk, and it doesn't come off as aggressive. The slashing headlights are about the only truly vicious cue on the whole vehicle, and the lovely red-white-and-blue tri-shield badge adds a touch of American class to the front grille. There is, to be honest, a decent amount of chrome on display here, but that's long been a Buick thing.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Matthew DeBord/BI</span></p><p class="caption">The infotainment system is solid.</p></div><p></p></div></div></p><h2>Infotainment and audio are superb</h2><p>The new Enclave has picked up a nice suite of driver-assist features, including adaptive cruise control and automatic braking. This is a freeway cruiser, so owners will appreciate such stuff. The infotainment system is GM's generally excellent and responsive setup, which we've seen in Chevy, GMC, and Cadillac vehicles. It's easy to use, with breezy Bluetooth device pairing and 4G LTE wifi connectivity through the carmaker's OnStar system. The Bose audio system sounds great, and our Enclave tester came with SiriusXM satellite radio.</p><p>This is a comfy car, there's plenty of room and lots of cargo capacity, especially with the third row folded down. The seats are supportive yet not stiff, and up front, they're heated and cooled. </p><p>Admittedly, the price tag might cause some prospective buyers to pause, but what we have here is essentially the best version of just about the best crossover that Buick can build. The obvious question is, "Is it worth the money?" The answer: Yep. But bear in mind that it's still a Buick. If a bolder, sportier SUV is what you crave, the Enclave Avenir might not be the best choice.</p><p>That said, it offers enough class and capability to give more prestigious luxury brands something to think about.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/tesla-model-3-best-worst-features-elon-musk-2018-2">The best and worst things about the Tesla Model 3</a></h3>        <div>                    </div>    </div>

We drove a $59,000 Buick Enclave Avenir to see how it stacks up against luxury SUVs - here's the verdict

<p><strong><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Buick</span></p><p class="caption">It's a Buick and it's a wagon.</p></div><p></p></div></div></strong></p><ul><li><strong>Buick has expanded its lineup with a wagon.</strong></li><li><strong>The Regal TourX is a capable family hauler that has way more style than an SUV.</strong></li><li><strong>Performance and tech are also strong points.</strong></li></ul><p><br />I grew up in a Buick station wagon - an Estate wagon, to be precise. It was the large-and-in-charge suburban family hauler before SUV sent wagons into near-extinction, leaving surviving examples to be gently nurtured by car writers with a thing for sedan handling and decent cargo capacity.</p><p>One can still find wagons for sale, even as full-size SUVs and compact crossovers dominate the US markets. The Subaru Outback will probably never vanish from this realm, and <a href="http://www.businessinsider.com/volvo-v90-cross-country-t6-awd-review-pictures-2017-11">Volvo's V90 is a nice, big wagon that we enjoyed when we tested it last year</a>. The Volvo V60 Cross Country and Audi Allroad are also in the fight.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Wikimedia Commons</span></p><p class="caption">Memories!</p></div><p></p></div></div></p><p>Enter the Buick Regal TourX, an unlikely new combatant in the, um, wagon wars. Buick is certainly well known for its popular crossovers. The Enclave, Envision, and Encore saved the brand, and the Regal GS sedan is a great sleeper sporty four-door. </p><p>And now, a wagon joins the party. It's actually a proper European estate (that's what they call wagons across the pond - they call sedans "saloons," too, those nutty Euros), sharing a platform with the Opel Insignia. Buick let us borrow a 2018 TourX with all-wheel-drive in the "Essence" upmarket trim level, tipping the price scales with numerous options at just north of $40,000.</p><p>I drove it around the Manhattan island and through the 'burbs of New Jersey for a week. And a good week it was. </p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Buick</span></p><p class="caption">Handsome!</p></div><p></p></div></div></p><p>Normally, I'd start with the Buick tri-shield badge and work my way back, but this time around, we'll begin with the almost comically capacious cargo area. Drop the rear seats and you have a small pickup truck, with over 70 cubic feet of space. With the rear seats up, the area is still vast, at over 30 cubic feet. I have the hauling needs that three children, one wife, and one dog create, and I couldn't come up with anything the TourX couldn't handle. </p><p>Buick argues that the low-slung wagon will be superior for sporting-lifestyle duty than a higher-riding crossover. Mount a roof rack and you'll be better able to hoist bikes, skis, etc. on and off. Makes sense, but the TourX isn't exactly a rugged-looking ride. Truthfully, its elegance and chic evoke Buicks of yore, with sleek surfaces and pleasing curves here and there. Our tester was stunning in a Smoked Peal Metallic paint job, with a Shale leather interior.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Buick</span></p><p class="caption">Vast!</p></div><p></p></div></div></p><p>The 250-horsepower, turbocharged four-banger can propel the Buick wagon from o-60 mph in about 6.5 seconds, while the eight-speed automatic helps post 24 mpg combined (21 city/29 highway). An auto shutdown/restart at idle might annoy some drivers, as it can't be deactivated. But it bumps up fuel economy and reduces emissions. For a vehicle of decent size, the TourX offers moderately crisp handling and some pep off the line, as well as steady and quiet freeway cruising with ample passing power. </p><p>You could give the TourX a push and it would probably respond happily, but its natural desire is to be smoothly piloted with one-hand on the wheel, just like it's 1978 again.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Buick</span></p><p class="caption">Bravo, Buick!</p></div><p></p></div></div></p><p>Tech-wise, the TourX is like almost every other vehicle in the General Motors fleet. The Intellilink skinning of GM's excellent infotainment system runs off responsive touchscreen that while not large isn't dinky, either. Bluetooth connections are a snap, and with OnStar 4G LTE wifi connectivity on board, you can run seven devices without sucking any wireless data from your plan. You have AUX and USB ports for devices, Apple CarPlay and Android Auto, and in the case of my tester, a tasty Bose audio system with SiriusXM satellite radio. </p><p>My final impression of the TourX is that it's a great option for stylish suburbanites who will like the cargo capacity and the big back seat for kids. This demographic is suppose to buy SUVs, but if you don't like to ride high and truck-like, then wagons continue to be a dandy alternative. And with the Buick Regal TourX, you have a handsome newcomer that's as suited to a night on the town as it is for runs to the beach or the lake. </p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/tesla-model-3-best-worst-features-elon-musk-2018-2">The best and worst things about the Tesla Model 3</a></h3>        <div>                    </div>    </div>

I drove a $40,000 Buick Regal TourX station wagon for a week - and it was just as good as most family SUVs

<p><div class="image-container float_right" style="width:401px"><div class="image"></div><p class="source">GM</p></div>GM is recalling certain 2013 Buick Encore SUVs because <a href="http://jalopnik.com/buick-recalls-encore-because-an-insignificant-part-call-468487855?utm_campaign=socialflow_jalopnik_twitter&amp;utm_source=jalopnik_twitter&amp;utm_medium=socialflow">the steering wheel can come loose</a> or completely separate from the steering column.</p>
<p>The 144 <keyword id="20632" type="ORGANIZATION" weightage="60" keywordseo="Cars">cars</keyword> included in the recall were made in December of 2012, and all have heated steering wheels. The steering wheel fastener may not have been properly installed, according to GM.</p>
<p>In a document submitted to the National Highway Traffic Safety Administration, <a href="http://www-odi.nhtsa.dot.gov/owners/SearchResults.action;jsessionid=hkt0RcsCRX426TVP4WnP7qn76c1rss9hlvy9kmn21Nk8YYXq0TJf!-2141817764">the automaker noted</a>:</p>
<p style="padding-left: 30px;">If the steering wheel separates from the steering column while driving, the ability to steer could be lost, increasing the risk of a crash.</p>
<p>The cars will be fixed at no cost to the owner, and the recall should be complete by April 12.</p>

Buick Recalls Cars Because The Steering Wheel May Fall Off

<ul class="summary-list"><li><strong>The pandemic changed car-buying and cut a lot of the incentives shoppers were used to.</strong></li><li><strong>Things are normalizing, and incentives for some types of cars and brands are creeping back.</strong></li></ul><p>Weary car-buyers may be in luck as some automakers bring back incentives to boost vehicle demand amid skyrocketing interest rates. </p><p>Overall, incentives — like rebates and loyalty cash — remain substantially lower than they were before the <a href="https://www.businessinsider.com/car-dealerships-shopping-inventory-prices-incentives-2023-1">pandemic upended the car-buying business</a>. Car buyers didn't see the <a href="https://www.businessinsider.com/cars-deals-december-holiday-end-of-year-sale-season-over-2022-12">end-of-year blowout sales</a> in November and December that they had been used to in holiday seasons' past. </p><p>Instead, shoppers had to settle for <a href="https://www.businessinsider.com/used-vehicle-prices-inventory-dealerships-pandemic-car-buyers-leasing-payments-2023-1">new and used vehicles with markups</a> above sticker price and no wiggle room.</p><p>Meanwhile, the <a href="https://www.experianplc.com/media/latest-news/2022/used-vehicle-finance-market-begins-to-level-out-as-used-vehicle-loans-see-smaller-year-over-year-increases-in-q3-2022/" target="_blank" rel="noopener">average interest rate</a> for new vehicle loans was around 5.16% in the third quarter of 2022, (up from 4.09% the year before), and 9.34% for used (up from 8.12% in 2021), according to Experian.</p><p>But in January, incentives rose slightly to 2.8% of a vehicle's average transaction price (down from a whopping 8.6% on average just two years before and as much as 12% pre-COVID), according to <a href="https://mediaroom.kbb.com/2023-02-13-Luxury-Share-of-U-S-Market-Sets-New-Record-in-January,-as-Transaction-Prices-Remain-Up-5-9-Year-Over-Year,-According-to-Kelley-Blue-Book" target="_blank" rel="noopener">Kelley Blue Book</a>, but up from 2.7% in December.</p><p>That puts discounts now at around $1,297, about 1% higher than the same time in 2022, Deutsche Bank analysts estimated this week. It's the "first time since July 2020 that incentives have come in higher from the prior year," they said.</p><p>"Going forward, we expect to see incentives continue increasing as vehicle inventories rise, dependent on the production environment and ongoing supply chain challenges," Deutsche Bank said.</p><h2>Where buyers might find the best incentives</h2><p>Luxury vehicles saw the highest incentives at 6.2% in January, KBB said. The most affordable vehicles, like compact cars and compact SUVs, had incentives between 3% to 4%. Vans and minivans had the lowest, at less than 1%. </p><p>"We're starting to see manufacturers come back with some incentivized interest rates to try to drive traffic," Scott Kunes, COO of Kunes Auto and RV Group, which owns more than 40 dealerships in the Midwest, told Insider. "There's also some loyalty cash, and there's a pretty decent amount of rebates on some of the higher end vehicles. That's a very small market, but it's a high profit area for the manufacturers."</p><p>Most non-luxury brands also saw declines in average transaction prices between 0.3% to 4.9% month-over-month in January, KBB said, indicating higher incentives could be pushing those vehicle prices down. That includes Chevrolet, Chrysler, Dodge, Ford, Honda, and more.</p><p>"Right now, for GMC Sierras, there's a 2.9% rate. Buicks, there's a 3.9% rate that you can get, plus there's rebates and incentives, like up to $6,000 off of MSRP on GMCs, up to $4,000 off on Buick Encores," Whitney Yates-Woods, dealer principal of Yates Buick GMC in Goodyear, Arizona, said. "We didn't see that during the pandemic at all.</p><p>"The subvented financing — so many of our buyers are using it," Yates-Woods added. "Financing through GM Financial, getting a really good rate, and then they're not feeling that payment being so high."</p><p>Yates-Woods' advice to buyers? "Try to take advantage of the incentivized rates that the manufacturers are offering," she said. "Make sure that you ask to see if you can qualify for it, because pretty much everyone's offering something and also, you can negotiate a good deal."</p><div type="image" title="A view of a sign outside a Chrysler auto dealer in Broomfield, Colorado October 1, 2014.  REUTERS/Rick Wilking " height="473" width="630" msid="98334792" hostid="261" sizebytes="17066"></div><h2>Other shoes still have to drop</h2><p>Tyson Jominy, a vice president analyzing automotive at J.D. Power, said he expects the industry to have a much higher incentive environment in the coming years.</p><p>"Over time, we'll ultimately have a lot more price pressure creep into the industry quickly," Jominy said. "It may become, we have way too much capacity and now all of a sudden we have to put incentives back on."</p><p>First steps first, though. About 50% of vehicles were sold over MSRP last summer, but that's down to around 30% now. That has to continue in order for incentives to increase.</p><p>"That's what we're seeing first — the first shoe to drop is pricing and dealers starting to not charge over MSRP anymore," Jominy said. "If dealers are still charging over MSRP, it doesn't make sense for automakers to incentivize. Automakers are waiting for at least MSRP, and then we can start talking about variable incentives." </p>

Car buyers rejoice: Discounts are making a comeback — but you might have to ask for them

<ul class="summary-list"><li>Car dealerships are already reflecting the slowdown in manufacturing due to the global <keyword id="10389950" type="UNKNOWN" weightage="60" keywordseo="chip-shortage">chip shortage</keyword>.</li><li>Shoppers may see higher prices and lower availability of certain car models.</li><li>Car companies began halting production in January and expect to lose billions this year.</li></ul><p>A global shortage of computer chips has caused shutdowns at several automotive manufacturing plants - and car dealerships are already reflecting the shortage.</p><p>Car shoppers can expect to see an impact in the availability of certain car models due to the chip shortage, as well as a price increase, <a href="https://www.cars.com/articles/global-microchip-shortage-makes-now-the-time-to-shop-for-cars-432067/">according to Cars.com</a> executive editor Joe Wiesenfelder. Dealerships may also be less likely to offer deals as supplies dwindle.</p><p>"Consumers in the market of considering buying a car should shop now because choices and prices could worsen over the next two quarters," Wiesenfelder told Insider. </p><p>Car companies began halting production at manufacturing plants in North America in the beginning of January.</p><p><a href="https://www.businessinsider.com/chip-shortage-car-companies-automakers-61-billion-loss-2021-1">Automotive companies stand to lose billions of dollars due to the disruption in supply.</a> Alix Partners <a href="https://www.bloomberg.com/news/articles/2021-01-27/covid-pandemic-slows-down-chipmakers-causes-car-shortage?sref=LspfQlRv">told Bloomberg</a> car companies could lose over $14 billion in the first quarter and about $61 billion overall in 2021. Though, Wiesenfelder said the industry could make up for the cuts by the end of the year.</p><p>Semiconductor chips have become an essential part of the manufacturing process for vehicles. The chips are used in navigation, bluetooth, and collision-detection systems and account for about 40% of a new car's cost, according to a <a href="https://www2.deloitte.com/content/dam/Deloitte/cn/Documents/technology-media-telecommunications/deloitte-cn-tmt-semiconductors-the-next-wave-en-190422.pdf">report</a> from Deloitte.</p><p>The lack of chips has forced automakers to prioritize production of their higher-priced and more-profitable models.</p><p>Here are some of the models <keyword id="20632" type="ORGANIZATION" weightage="60" keywordseo="Cars">Cars</keyword>.com said may see price increases or limited availability.</p><h2><keyword id="6374528" type="ORGANIZATION" weightage="60" keywordseo="toyota">Toyota</keyword> has already started increasing prices</h2><div type="image" title="2014 2017 toyota tundra crewmax" height="1666" width="2222" msid="80911692" hostid="261"></div><p>The Toyota Tundra was one of the first cars to see a halt in production.</p><p>Cars.com said the Tundra has seen a drop in inventory of almost 27% for the month of February. Some Toyota models have already demonstrated price increases, including the Tacoma, which has gone up about $584 or 1.6%, despite only a 4% decrease in inventory, according to Cars.com.</p><p>Many Japanese carmakers are seeing an impact. Honda was one of the first car companies to warn of computer chip shortages, according to <a href="https://www.bloomberg.com/news/articles/2021-01-13/overview-of-japan-carmakers-halting-output-due-to-chip-shortage#:~:text=Honda%20North%20America.-,Honda%20was%20among%20the%20first%20global%20automaker%20to%20warn%20of,5%20and%206.&amp;text=The%20plant%20is%20set%20to,that%20was%20announced%20in%202019.019.">Bloomberg</a>.</p><p>The Japanese carmaker has slashed production at several major manufacturing plants. In particular, shoppers can expect to see some pressure on the Honda Accord, Civic, Insight, and Odyssey, as well as the Acura RDX.</p><p>Nissan has had to adjust production in both Japan and North America. A spokesperson told Insider the company is continuing to assess the long-term impact of the chip shortage. For now, the models that have seen slowdowns for the carmaker include the Nissan Altima, Frontier, and Titan.</p><p>In February, Subaru <a href="https://www.reuters.com/article/autos-subaru-chips/update-1-subaru-to-cut-annual-production-plan-by-48000-vehicles-on-chip-shortage-idUSL1N2KB0EJ">reported</a> it planned to cut its production plan for 2021 by about 58,000 cars. The models impacted by the cut include the Subaru Ascent, Impreza, Legacy, and Outback.</p><h2><keyword id="6355174" type="UNKNOWN" weightage="60" keywordseo="ford">Ford</keyword> and General Motors expect to lose billions of dollars </h2><div type="image" title="ford factory" height="1119" width="1493" msid="80911693" hostid="261"></div><p>Ford began slowing down production at its plant in Louisville in January. During <a href="https://www.businessinsider.com/ford-boosts-investment-plan-for-evs-and-self-driving-vehicles-reports-loss-2021-2">Ford's fourth-quarter earnings call,</a> CFO John Lawler said the chip shortage could cut the company's first-quarter production by 10% to 20% - a $2.5 billion hit to revenue.</p><p>The car models that will be impacted by cuts at Ford plants include the Ford Escape and Lincoln Corsair, which are produced at the Louisville plant. Cars.com said there will also be declines in production of the Ford Edge and Explorer, as well as the Lincoln Aviator and Lincoln Nautilus.</p><p>During <a href="https://www.businessinsider.com/gm-2020-profit-drops-but-it-makes-643b-despite-pandemic-2021-2">GM's fourth-quarter earnings call</a> the company said it expects to see a negative impact of $1.5 to $2 billion this year. </p><p>The company <a href="https://www.cnn.com/2021/02/09/business/gm-extends-plant-shutdowns-chip-shortage/index.html">announced</a> last week that it was closing three of its North American plants. The manufacturing sites will remain closed until at least mid-March.</p><p>The closures are expected to impact the Buick Encore, Cadillac XT4, and GMC Terrain. The company's Chevrolet line will also see some slowdowns, as the sites that produce Chevrolet Equinox, Malibu, and Trax have been impacted.</p><h2>Fiat Chrysler and Volkswagen also feel the pinch</h2><div type="image" title="Dodge Challenger SRT Hellcat Redeye Widebody" height="1586" width="2114" msid="80911695" hostid="261"></div><p>In January Fiat Chrysler suspended operations at plants in Ontario and Mexico. The slowdowns will impact several Chrysler, Dodge, and Jeep products. Cars.com said dealerships will likely have lower inventories for the Chrysler 300, Pacifica, and Voyager. The Dodge Challenger and Charger may be in shorter supply, as well as the Jeep Cherokee and Compass.</p><p>BMW, Mercedes-Benz, and Volkswagen were some of the first car companies overseas to report shortages. In December, Volkswagen had already begun lowering production rates. The Volkswagen Atlas, Atlas Cross Sport, and Passat have already been impacted by the supply disruption.</p><p>Toyota, Honda, Subaru, Ford, <keyword id="6372405" type="ORGANIZATION" weightage="60" keywordseo="gm">GM</keyword>, Fiat Chrysler, and Volkswagen did not respond in time to comment.</p>

Here are some of the car models most likely to be in shorter supply due to the global chip shortage

<p><span style="line-height: 1.5em;"><div class="KonaFilter image-container display-table float_right"><div><div class="image"><p class="source"><span>Getty Images / Alexandra Beier</span></p></div><p></p></div></div>Both </span><a href="http://www.businessinsider.com/gm-q2-earnings-2014-7">GM</a><span style="line-height: 1.5em;"> and </span><a href="http://www.businessinsider.com/ford-q2-earnings-2014-7">Ford</a><span style="line-height: 1.5em;"> reported second quarter earnings today, and while the General slightly missed expectations and the Blue Oval notched a beat, an interesting subplot was that both companies are starting to see their European business pick up.</span></p>
<p>Ford managed a quarterly profit in Europe for the first time in three years. This was an important milestone for the company and newly minted CEO Mark Fields, who took over from the extremely difficult act to follow known as Alan Mulally (he basically saved the Ford prior to the financial crisis). Ford has always taken Europe seriously and is trying to bolster its global competitive position relative to GM and foreign rivals like Toyota, Volkswagen, and Fiat.</p>
<p>GM's misadventures across the pond are more complicated. Last year, it pulled the plug on Chevrolet in Europe, with the hope that its could shift market share to Opel, a brand that the automaker nearly jettisoned in the aftermath of its bailout and bankruptcy in 2009 (Hummer, Pontiac, Saturn, and Saab were sent packing, however). Even before this year's massive recall - 30 million vehicles and counting - GM's European operations were dragging on the company's full recovery.</p>
<p>So, on GM's earnings call today, it was encouraging to hear CFO Chuck Stevens change his European outlook from "break even" to "profitable." O.K., it may take 10 years to get there. But there's light at the end of the tunnel, although it's a pretty <em>long</em> tunnel.</p>
<p>CEO Mary Barra also highlighted GM's flickering Euro-recovery. Market share for Opel and its British sibling, Vauxhall, rose in eleven European markets. And the <a href="http://www.opel.com/microapps/mokka/">Opel Mokka</a> is, Barra said, the bestselling SUV in Germany (thanks to the industry practice known as "platform sharing," it's known to Americans as the <a href="http://www.buick.com/encore-luxury-small-crossover.html">Buick Encore</a>).</p>
<p>Even though business looks better for GM in Europe, the company is far from free of troubles: South America, as Barra said on the call, is "very challenging." Venezuela in particular is generating some major headaches.</p>
<p>Ford is also having issues there, so we'll have to see if the carmakers' South America problems go the way of their problems in Europe or get worse in the second half of 2014.</p>

Europe Is Finally Turning Around For GM And Ford

<p><span style="line-height: 1.5em;"><div class="image-container float_right" style="width:400px"><div class="image"></div><p class="source">Toyota</p></div>In addition to the host of economic data out today in the U.S. and around the world, global auto makers are reporting January sales figures.</span></p>
<p><span style="line-height: 1.5em;">Nissan reported January sales growth of 2 percent, below expectations of 3.5 percent expansion.</span></p>
<p><span style="line-height: 1.5em;">Honda sales rose 13 percent in January. Analysts were looking for a 21 percent gain.</span></p>
<p>Toyota reported <keyword id="46211" type="UNKNOWN" weightage="60" keywordseo="Auto-sales">auto sales</keyword> growth of 26.6 percent in January, ahead of analysts' estimates of a 22 percent rise.</p>
<p>General Motors reported sales up 15.9 percent in January, ahead of expectations of a 13 percent gain.</p>
<p>Below are highlights from <a href="http://media.gm.com/content/dam/Media/gmcom/investor/2013/GM-January-2013-Sales.pdf">GM's press release</a>:</p>
<p style="padding-left: 30px;">General Motors Co. (NYSE: GM) announced today that it sold 194,699 vehicles in the United States in January, up 16 percent compared with a year ago. Retail sales were up 24 percent. Fleet sales were down 2 percent.</p>
<p style="padding-left: 30px;">“The year is off to a very good start for General Motors,” said Kurt McNeil, vice president of U.S. sales operations. “There’s a sense of optimism among our dealers that only comes when you pair a growing economy with great new products. We started to see the benefits in 2012 with vehicles like the Chevrolet Sonic, Cadillac ATS and Buick Verano. Now in 2013, we’re entering the sweet spot of our product plan in a growing economy.”</p>
<p style="padding-left: 30px;"><span style="line-height: 1.5em;">Over the course of 2013, Chevrolet will launch the all-new Impala, SS, Silverado and Corvette, as well as the Cruze diesel and Spark EV. Buick is launching the Encore small crossover, followed by redesigns of the Regal and LaCrosse. GMC will launch an all-new Sierra. Cadillac will launch an all-new CTS.</span></p>
<p><span style="line-height: 1.5em;">Ford reported sales up 22 percent in January, ahead of analysts' estimates of a 17 percent advance.</span></p>
<p>Below are highlights from Ford's <a href="http://www.prnewswire.com/news-releases/ford-motor-company-january-sales-up-22-percent-best-since-2006-fusion-escape-post-record-january-sales-189364731.html">press release:</a></p>
<ul>
<li>Ford Motor Company's January U.S. sales increase 22 percent, with gains across the lineup – cars up 34 percent, utilities up 23 percent, and trucks up 11 percent</li>
<li>Fusion up 65 percent versus year-ago levels – a record January sales month</li>
<li>Escape has best January sales ever – sales increase 16 percent, topping last year's January record</li>
<li>Explorer sales up 46 percent – best January sales since 2005</li>
<li>America's best-selling pickup for 36 years running, F-Series posts a 22 percent gain</li>
</ul>
<p>Chrysler was the first to post numbers. The Detroit auto maker reported sales up 16 percent in January, ahead of analysts' estimates of 15 percent sales growth.</p>
<p>Below are highlights from Chrysler's <a href="http://www.prnewswire.com/news-releases/chrysler-group-llc-reports-january-2013-us-sales-increased-16-percent-strongest-january-sales-in-five-years-189353691.html">press release:</a></p>
<p style="padding-left: 30px;">Chrysler Group LLC today reported U.S. sales of 117,731 units, a 16 percent increase compared with sales in <span class="xn-chron">January 2012</span> (101,149 units), and the group's best January sales since 2008.</p>
<p style="padding-left: 30px;">The Chrysler, Dodge, Ram Truck and FIAT brands each posted year-over-year sales gains in January compared with the same month last year. The Dodge brand's 37 percent increase was the largest sales gain of any Chrysler Group brand in January. Chrysler Group extended its streak in January to 34-consecutive months of year-over-year sales gains.</p>
<p style="padding-left: 30px;">"It's been a good week for the Chrysler Group. On Wednesday we announced full year 2012 profits of <span class="xn-money">$1.7 billion</span> and followed that today with our January sales, up 16 percent, marking our 34th-consecutive month of year-over-year sales growth," said <span class="xn-person">Reid Bigland</span>, Head of U.S. Sales. "Entering 2013 our product portfolio has never been stronger with our new Ram truck picking up both the 2013 Motor Trend and the North American 'Truck of the Year' awards, and the introduction of our new 30 mpg highway Jeep® Grand Cherokee equipped with our new EcoDiesel engine."</p>
<p>Total global vehicle sales reported by all auto makers are expected to fall to 15.2 million at a seasonally adjusted annualized rate in January from 15.3 million in December.</p>
<p><strong>We will have more sales figures LIVE throughout the day as other auto makers report. <a href="http://www.businessinsider.com/january-auto-sales-2013-2">Click here to refresh for updates &gt;</a></strong></p>

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