US Auto Sales Plunge Whopping 36 Percent in Dec.

Michael Martin, who owns Chevrolet and Saturn dealerships in Manassas, Va., said he saw customer traffic and phone calls pick up almost immediately.

The discount pricing available is advertised on a placard placed on the side of an unsold 2008...

The discount pricing available is advertised on a placard placed on the side of an unsold 2008 Explorer at a Ford dealership in the west Denver suburb of Lakewood, Colo., on Sunday, Dec. 28, 2008. Automakers are scheduled to report December and full-year sales on Monday, Jan. 5, 2009, bringing an official close to what has been one of the most trying years for the industry in recent memory. (AP Photo/David Zalubowski)

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"I'd like to see (the financing offers) really take hold over the next 30 to 45 days," Martin said. "Hopefully, we'll start seeing some real upticks."

Incentives such as rebates and low-interest financing offered last month were the highest on record for a December, said Jesse Toprak, executive director of industry analysis for the Edmunds.com automotive Web site.

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Rebates on full-size trucks were $7,000 to $8,000 in December, and IHS Global Insight analyst Aaron Bragman expects similar incentives as long as the economy is poor.

"You look in the paper and the deals on brand new GM pickups are astonishing," he said. "The discount that you get buys a heck of a lot of gasoline."

But Mark LaNeve, GM's vice president for North American marketing, said he expects sales incentives to drop as GM sells down 2008 models. It still will be competitive in areas such as midsize cars, where Toyota has been offering $3,500 incentives on its top-selling Camry model, LaNeve said.

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AP Auto Writers Kimberly S. Johnson in Detroit and Dan Strumpf and Bree Fowler in New York contributed to this report.

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