GM needs to get rid of thousands of Saturn and Pontiac cars and they are having what some are calling a “fire sale” to get rid of the two brands that are now discontinued by General Motors. With leftover inventory on dealer lots, GM is offering some attractive incentives to dealerships so they can move the Saturn and Pontiac cars off the dealer’s lots. Anyone looking for a new car from the discontinued Saturn and Pontiac line could walk away buying one for up to 46% off the sticker price.

General Motors recently sent out letters to dealers offering $7,000 for every new Saturn or Pontiac on their lot that is moved to rental-vehicle or service-vehicle fleets operated by the dealers. Once they are moved to the rental or service fleet, the dealer can sell the cars to the public, but they have to do their own advertising. GM will wash their hands of these popular brands once the dealer accepts the $7,000 offer.

CBS reported that 14,500 new Saturns and Pontiacs filled dealership inventory at the beginning of December, 2009. The offer from GM is good until January 4, 2010 if dealers plan to take part.

End of year sales for dealers could skyrocket with this plan in place. After a tough year for car dealers, selling off the popular Saturn and Pontiac cars should not be a problem. They are a trusted brand and with a large discount, people in the market for a new car will likely get an amazing deal.

The downside of buying a discontinued Saturn or Pontiac

The deal may be great but what happens after you buy the car? It shouldn’t be too traumatic. GM is offering to stand by the warranty on these cars although some could see a reduction in resale value if they plan to unload the car at a later date. However, if you buy a new car and get in the area of 46% off the sticker price, it’s worth hanging on to — at least while you have the GM warranty.