VW Offers $0 Down Payment, $0 Due at Signing

Customers can walk into a Volkswagen dealer and get a $0 down payment, $0 due at signing, $0 first’s month payment, and $0 security deposit deal.

The $0 program applies to customers who want to lease a car. The balance of the payments run $229 for 36 months. The offers for buyers are nearly as good, with an APR of 1.9% for 36 months. If inflation in the U.S. ticks up a bit, the VW APR could be below the rise of the cost of living.

VW is not alone in offering year-end discounts, but it may be the only car company that has no choice other than to push aggressive incentives. Ford’s (NYSE: F) Black Friday promotion is intended, at least partially, as a way to clear 2015 inventory:

Get Ford Black Friday Bonus cash of $500 on the 2015/2016 Escape and 2015 Edge and $750 on the 2015/2016 Fusion and 2015 Focus.

People who want hybrid or electric versions of these Fords need not apply.

GM’s (NYSE: GM) Chevy has Black Friday deals as well. Like Ford, these are on selected models and appear to be a way to flush dealer lots of 2015 model inventory. Chevy offers an extraordinary 72 month, 0% interest loan, but only on the 2015 Silverado 1500. It is Chevy’s best-selling model, but the GM division has already shipped 2016 models, and has to effectively compete with Ford’s top-selling vehicle, the F-150 pick up. The F-150 recently shipped a revamped version which Chevy has to believe will challenge its unit sales growth.

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VW’s struggle with its diesel emission scandal will get worse, and will drive away customers. The German company has started a series of battles against regulators in several states. VW is also facing challenges from national authorities. VW’s sales in the U.S. have not plummeted, yet. It still has gas-powered cars. But VW’s reputation has been undermined enough that its sales will certainly suffer. Extremely aggressive incentives may be the only way to slow this. However, the company may find that consumers believe they are better off buying any of the dozens of competing models. In that case, no incentives will save it.