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Get Good Deals on CarsBy Catherine
BillSavings.com Brief:
A sluggish economy can be felt when buying an automobile just like everywhere else. However, this may mean better deals for certain qualified buyers. Lots of people are finding lower prices and interest rates when buying a car that's popular as well as leasing, cash back, and other incentives to get them on the car lot. If you are buying a car, this might be a great time to find good deals on cars.
The automobile industry is struggling. Even companies with cars that have been historically in high demand are feeling the results of a tired economy. Honda, Toyota, and BMW have responded by offering deals that will hopefully entice buyers to buy or lease their makes and models. Sales in 2007 were the worst they've been in over ten years. Sales in 2008 weren't much better. That's why dealers are offering low financing to those with excellent credit when buying a car as well as rebates and lease deals. They are offering good deals on cars on a wider variety of models than ever before. This is good news for the consumer. Rough times Plants are closing down and manufacturers are making far fewer vehicles than they used to, but there is still a surplus. More companies are producing a good deal of fuel-efficient automobiles and have an existing inventory of other kinds of cars as well. This means buyers can take advantage of a surplus of popular models -- including economical options as well as sport sedans and luxury SUVs -- for little down and lower payments each month. This also helps consumers in a negotiating position when arriving in the showroom to haggle prices. They may have a better advantage than they've had in years. Some of the good deals on cars are coming from popular auto makers in the United States. However, many popular foreign manufacturers like Toyota, Nissan, and BMW are getting in on the action. These companies hardly ever provide big incentives. The economy is making a buying an automobile public quite nervous and so previously immune companies are lowering prices even though their sales have done better than some of their domestic counterparts. Some of the good deals on cars include BMW offering a similar monthly lease for certain sedans that's about the same as a top of the line Ford Taurus or Honda Accord. BMW models usually have a higher price when buying, so this incentive could create a larger customer base than they would usually be selling to. General Motors is giving qualified buyers a generous bonus in addition to cash rebates for their popular Chevrolet Silverado. Some customers with good credit can trade some of the cash back for a lower interest rate instead. Toyota is also offering specials. They are advertising zero percent financing on the new 2008 Highlander and Camry. The Camry is already the best-selling car in the United States; this should help entice buyers even more. Some do better than others, but every top manufacturer of cars has seen a decline in sales recently. Even Chrysler, who offers more free features on its cars and trucks than other companies, has been hurting. Historically, when the housing market does poorly, the buying a car market does badly as well. When lending institutions offer low mortgage rates to buyers with good credit so they can more easily buy homes, there is a risk that those borrowers will default on such loans. In much the same way, car dealers' finance departments and similar lenders have been suffering recently for approving loans to high-risk borrowers. As a result, loans targeting buyers with bad credit that were once all the rage, have gone away. Now is the time If you have great credit and are in the need of a new car, now might be the right time for buying a car. This trend of great deals is not like the inventory-reduction sales of yesteryear. These deals apply to new and popular models, not just the ones left over that no one wants. Good deals on cars, rebates, and other incentives on newer models used to not happen, but automakers are doing business differently. They have learned that there is money to be made when adding small incentives on new vehicles early in the year. Low finance rates on popular models, for example, might keep these models competitive in a crowded market with skittish buyers. Many deals expire within thirty days, but don't feel rushed. A sluggish market means that many incentives will probably stick around and might even be replaced by better deals. Buyers might even get better rates for car loans through the manufacturers' finance department rather than banks. Such lenders have more reason to approve loans at a lower rate in order to sell cars. Where to look Put simply, car buyers can find good deals on cars everywhere. But the most consistent incentives come from Chrysler, Ford, General Motors and Nissan. Dealers are slashing prices while their finance units are offering lower interest rates. Banks are also getting in on the action, offering lower rates and discounts for people who have their loan payments automatically deducted from their checking accounts. The car selling and related loan industries are offering better deals than a year ago. This doesn't mean that all car shoppers looking for financed loans will benefit from the good deals on cars, especially as lenders tighten credit standards in the face of so many repossessions and defaulted loans. Borrowers with bad credit might have to scrape together the cash for a bigger down payment. They might have to improve their credit scores before a loan can be approved. 8/6/2008
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