The Wall Street Journalreports that GM is offering dealers $7,000 for every new Saturn or Pontiac on their lot that is moved to rental-vehicle or service-vehicle fleets operated by the dealers. Dealers will be able to pass along the savings to customers although the cars will be listed as "used" with the dealer being the first owner.
If a dealer passes along all the new incentive to a customer, Pontiac's cheapest vehicle, the G3 compact, could go for about $8,000, or 46% off the sticker price of about $15,000.
But the offer presents buyers with some risks. Because the brands are being discontinued—combined with the fact these vehicles technically are "used"—the later resale value of the cars could be significantly lower than the resale value of other ongoing car brands sold as new.
And while GM says these customers will receive the balance of the warranty period on the vehicles, and GM will continue to provide parts and service, some buyers may not feel comfortable owning an "orphan" brand.
GM already has been offering Saturn and Pontiac buyers $6,500 discounts, or 0% financing on 72-month loans. These two offers can't be combined with the $7,000-a-vehicle incentive GM is giving dealers.
The consumers are willing to buy an orphaned Saturn or Pontiac than they should be able to find some great deals on dealer's lots in the upcoming weeks. The Detroit Free Presssays buyers of models under the program will still have new car warranty coverage.
The Wall Street Journal 
