Incentives slash cost of smart fortwo to $99/mo.

Smart USA is hoping to take advantage of the recently passed "Cash-for-Clunkers" program by offering its own joint incentive to lure buyers.  The car hasn't been selling as well in the US as the company hoped, but now with the new incentives making it possible to get one for cheap, that may all change.

The company is offering 4.2 percent financing on the car through the end of July.  When combined with the highest voucher level of $4,500 through Cash-for-Clunkers, you're looking at a fortwo for $99 a month.  The fortwo has had limited appeal because of its small size and the fact that the fuel economy is not much better than some roomier cars that sale for the same price.  These incentives may tilt the balance in the smart's favor though.  At a time when people are concerned with fuel economy and getting a good deal, it may turn out to be a great business move.

I'd love to see other car makers offering similar incentives to go with the Cash-for-Clunkers program.  Making their most fuel-efficient models extra affordable would not only lead to better business for them, but more efficient cars on the road. Instead of people using the program to trade in an old gas-guzzler for a newer, only slightly less gas-guzzling model, we could possibly see this program make a noticeable difference in overall fuel use and emissions.

via Autoblog Green