What Recession? Auto Buyers Are Buying Buying Buying

USA Today reported that consumers are scooping up discounted cars and trucks at a pace that defies Wall Street's bearish expectations with vehicles selling in June at an annual rate of about 17 million.

Sales are being helped by a General Motors' incentive program that allows people to get out of GM leases early if they buy or lease a new GM product. GM has told analysts that more than 40,000 lease holders will have taken advantage of the deal by month's end.

It is a boon to consumers, who not only get a new car ahead of schedule but can avoid exceeding a lease's mileage limit. The big plus for GM: Cars come off lease in the summer instead of winter, when, GM research shows, resale value falls because the new models are coming out. Also, GM retains 100% of the customers who take advantage of the program.

USA Today went on to report that Ford Motor is trying a similar but limited program, by offering an early out on a Windstar minivan lease to those who buy another Windstar. They quote Ford sales analyst George Pipas who admits he is curious about the results of the GM program, but he is cautious about how big the payoff is in terms of retaining customers. ''There is a tremendously high loyalty rate with Ford's Red Carpet Lease holders, which means we get a lot of those customers to buy or lease another Ford anyway.''

DaimlerChrysler doesn't have an early-out lease plan , but reports say that DC officials are watching GM's results closely and may try a program specifically aimed at slow-selling models. Bill Golling, a Bloomfield Hills, Mich., dealer with both GM and Chrysler brands, says his GMC/Pontiac store has posted a healthier month due to the program. ''Chrysler is aware of the GM program, but our Chrysler and Jeep business is up this month with the incentives we already have.''