Automakers Offer Special Deals On ‘95 Models Redesigned For ‘96

Bargain hunters have extra incentives to shop for a new car during this summer’s close-out sales.

In addition to manufacturers’ usual offerings of cash rebates, cut-rate financing and special leases on some models, dealers in the most popular car in America and the most popular minivan have to make room for fully redesigned 1996 versions of the vehicles.

Some ‘96 Chrysler Corp. minivans, which also carry Dodge and Plymouth labels, already are on the road. Ford Motor Co.’s new Taurus and Mercury Sable, widely publicized since last year, will be offered to the public Sept. 28.

Honda’s Civic also has been fully redesigned and re-engineered, and the redesigned 1996 Saturn, General Motors’ import fighter and experiment in no-dicker selling, already is in showrooms.

“Buyers will find some of the best deals on vehicles that won’t be back for 1996. Manufacturers want those outgoing models cleared out fast and dealers want to have a lot of inventory with a new model,” said Eric Hood, an analyst with Dohring Co., a market research firm in Detroit.

“There are tremendous incentives to buy or lease this summer,” said Jack Perkins, executive director of the Rhode Island Automobile Dealers Association.

Even if you aren’t interested in a vehicle that’s being redesigned, buying a 1995 model will allow you to avoid the price increases most manufacturers have built into 1996 models.

Insurance companies gain favor

Expect insurance companies to gain favor among investors in coming days.

Berkshire Hathaway Inc., the company owned by investment guru Warren Buffett, said last week it will buy all the shares of insurer Geico Corp. it doesn’t already own for $70 a share, or about $2.3 billion.

Property and casualty insurer Geico will become a unit of Berkshire Hathaway in a transaction already approved by both boards. All of Geico’s shares not owned by Berkshire Hathaway will be converted into cash.

Such moves by Buffett, the nation’s most revered investor, set Wall Street in motion.

Geico shares increased more than 20 percent Friday, after Buffet’s purchase became public. Equally significant, other insurance stocks rallied.

Here’s where to get information

Here are some sources of information for individual investors who like to make their own investment decisions:

Directory of Companies Offering Dividend Reinvestment Plans. Contact Evergreen Enterprises, P.O. Box 763, Laurel, Md. 20725-0763. (301) 549-3939. $29.95 plus $2.50 shipping.

American Association of Individual Investors, 625 North Michigan Avenue, Suite 1900, Chicago, Ill., 60611-3110. (312) 280-0170.

Membership is $49 and includes a subscription to AAII Journal and The Individual Investor’s Guide to Low Load Mutual Funds, a tax-planning guide.

AAII also offers books, software and computer services, and seminars.

National Association of Investors Corporation. (810) 583-NAIC. Individual membership is $35 a year, includes subscription to Better Investing.

Better Investing, a monthly NAIC magazine, costs $20 a year.

DRIP Investor, a monthly newsletter. $79 a year. (219) 931-6480.