• by Karl Greenberg , November 5, 2008

Perhaps it is a reflection of how tough things have gotten in the auto business, and how skittish consumers have become that 0% financing has arrived in the luxury market. Infiniti is the latest such brand to talk financing to consumers who may believe that such a thing is not longer available--0% or otherwise.

The luxury car is moving up its yearly end-of-year "Limited Engagement Winter Event" promotion to November, and for the first time is offering 0% financing for 36 months on all 2008 models along with longer-term financing offers. Infiniti usually does its year-end promotion, "The Limited Engagement Winter Event," in December.

"We know there is still a demand for the luxury and performance of Infiniti automobiles, but with the negative consumer news of late, consumer perception is that there's no financing available," said Ben Poore, vice president of marketing for Infiniti.

The program also includes a leasing offer of $349 per month on the 2008 Infiniti G Sedan; and $399 per month for the 2008 Infiniti G Coupe or Infiniti EX.

Infiniti sales for October were 7,112 units--down from 9,955 units a year ago, for a decline of 28.6%. The company sold 898 of the new Infiniti EX crossover, which goes on sale officially next month.

Still, Infiniti's sales are a fraction of competitors' volume. Lexus last month sold 9,332 passenger, a 40.2% decline versus the month last year, and 6,951 trucks, a 33.7% decline from the year-ago month.

Todd Turner, president of L.A.-based Car Concepts, says Infiniti is not the first. "Others have done 0% in the past. Mercedes has been there, and BMW has offered it on a couple of models in the past, so it's not terribly unique. It's a horrible market now for everyone, and when you don't have as huge a brand following as BMW or Lexus, it's especially hard," he says.

He says if Infiniti has a challenge beyond immediate market considerations, it is brand identity. "They launched simultaneously with Lexus, and Lexus took off with brand identity. For Infiniti, it didn't happen the same way."

Part of the issue may be that Lexus' flagship is the LS--a true luxury sedan--while Infiniti is following more of a BMW model around entry-level performance sedans, per Turner. "The G35 turned around the brand. Both the G and M have done well, while Lexus built their brand identity on the LS and worked down from that," he says.

Poore says the Limited Engagement Winter Event will be a multi-level platform campaign with support at the national, regional and local level, including television, print, online, radio, point of sale, and direct/CRM. "We'll essentially be in all mediums," he says.

He says Infiniti has offered 0% financing on certain models during the Winter Event, but never the full line. "Normally we offer reduced rate financing and special lease offers, but rarely at the same time, so that we'd be able to give consumers a wider range of options."

The all-new EX and FX crossovers launched in 2008, and 2009 G Line has updates with the G Sedan getting the 3.7-liter engine (which increases horsepower and mpg), the Coupe now being available with all-wheel-drive for the first time, and a new 7-speed automatic for both. And the first-ever G Convertible makes its global debut at the L.A. International Auto Show in two weeks, with the Premiere Edition being featured in Bloomingdale's Holiday Catalog.

Poore says Infiniti has seen considerable improvements in awareness, familiarity, and opinion in 2008. "Key drivers in improving our perception with luxury car buyers. And despite a difficult market, our share of the market is increasing," he says.