All About Japan Autos

If you’ve been holding out buying a new car, it appears that the wait has been worth it.

Automotive News writes, “Automakers disappointed by June sales are extending discounts — and in some cases modestly increasing rebates and enhancing loan terms — on new cars and trucks to entice skittish shoppers.”

The deals come from some surprising sources. Kicking Tires points out Toyota “is still recoiling from a massive public relations hit over a spate of significant recalls, and the incentives are now extended through Aug. 2.” Toyota has been offering low- and no-interest financing — a rare thing for the brand — since the fallout from its massive recalls began.

Sales are down overall, however. “Light vehicle sales rose just 14 percent in June from depressed levels in June 2009. And demand dropped from May to June, taking some momentum out of the recovery and dashing hopes for a stronger second-half rebound,” reports Automotive News.

While incentives for July are slightly better than they were in June, don’t expect a rash of rock-bottom pricing like we saw last summer. “Despite expected weak sales in June and signs of a slowing economic recovery, automakers are remaining vigilant in keeping inventories low so they don’t require expensive incentives to move the metal,” says Edmunds Auto Observer. “For the first six months of 2009, the industry’s days-to-turn — the number of days between a vehicle delivered to a dealership and purchased by a customer — was over 90 days for every month. For the first six months of 2010 — and even in the late months of 2009, the industry’s days to turn has not exceeded 55 days.”

While the industry is better at managing inventory now, there are still some good deals to be had. Toyota’s not the only one offering zero-percent financing. General Motors is offering it across most of their brands, as is Ford and Nissan. Even brands that usually don’t go for incentives, like Mini and Honda, are offering low-interest financing. There are even special lease deals available. Also, if sales continue to slow, automakers may sweeten their deals even more in an effort to clear 2010 models off their lots to make way for the 2011 models – some of which are already on dealer lots.

If you’re in the market for a new car, check out the U.S. News rankings of this year’s best cars as well as this month’s best car deals.