Is This a Good Time To Buy a Car? (And Can You Get a Loan?)
We''ve been hearing a lot about the frozen tundra of credit availability and how folks under 700 FICO need not apply. Well, Phil and I did a little research and got the low down on what's really happening to consumers in search of new wheels.
Our article, Credit Crunch? Or Consumer Confidence Gap? covers:
- Why Are Car Buyers Staying Away from the Dealership?
- Can I Get a Car Loan?
- How Have Credit Requirements Changed?
- Is It a Good Time To Buy a Car?
- Car-Buying Tips in Troubled Times
Because automakers are hurting so badly, it might be one of the best times ever to buy car -- just be sure to check our Rebates and Incentives information to make sure you get every manufacturer and dealer incentive coming to you. Yes, it's true: Both auto financing and leasing standards are tougher, but nowhere near impossible to overcome. If your credit's not great, you'll have to pony up more cash up front to make it happen. But the people who are shut out of vehicle financing are likely to be those who truly should be -- because they're bad risks. Call it a market correction.
But what about you personally? Have you found it tougher to buy a car, or do you know people who have? Are you polishing up your credit score? Are you shopping the used car market instead? Or have you taken advantage of the chaos to score a great deal? Let us know!
- Posted by
- Joanne Helperin October 29, 2008, 6:00 AM
- Permalink
- Categories:
- Auto Leasing, Car Buying, Car Loans and Financing, Car Negotiating
- Technorati Tags:
- Auto Financing, Car Buying, Car Loan, Credit Availability
"Don't buy the deal, buy the car". Good advice!
My wife saw the zero percent Toyota incentives last month and started researching cars. Our rides are both about ten years old but they run fine and aren't leaving us stranded. But I guess it is almost time, since it's been a decade since we hit a showroom.
We've been to a three dealers so far and every salesperson has been knowledgeable, easy going and not pushy (unlike the last time).
Scoring a good deal would be nice, but we don't have to have a new car immediately so we'll try to take our time since we plan to live with the next one for ten years too.
It is a good time because car loan rates are low and deals are to be had everywhere. However, our plans don't change just because there is a sale. This goes for all our spending habits.
We will buy when we need it and keep what we buy for a long time= that is always the best deal by far.
If we were looking to buy right now, I would be a very happy consumer though!
Our cars are old, but run well. No matter how good the deals are right now, keeping our existing cars is much better deal.
I'm impressed with all of you commenting here; as you're doing the smart thing! I will say, though, that Toyota's zero percent financing is a first, and (unlike some other brands) we don't know that it will come back over and over again. So, Steve, if you like a Toyota for your next car, this might be the time to start shopping. Just a thought.
0% for 24 or 36 months won't really help a lot of people. What good is that if you are financing the entire amount of a car that costs $30,000?
@ Researchqueen, we usually save for 10 years and buy with cash but free or cheap money really makes me think about that lost opportunity cost by writing a check for a car. Then again, in today's economy, it may be smarter to dump money into a depreciating asset instead of Wall Street.
Toyota stock has lost 2/3rd's of its value in the last couple of years, the yen is hammering them and cars aren't selling in their domestic market. So they may keep money on the hood for a while to come.
I'd very simply like to add that in any buy-sell situation, the goal is very clear - buy low, sell high. So in a time like this when the national market, whether it be housing, stocks, autos, or whatever else for that matter - are down, it's the time to buy. Sell high, buy low. For those of you that want to be ultra cautious, odds are you'll never get hurt, but only because you won't take any risks which also means you'll never make great gains. Conservative is steady, but that's it. If you're happily mediocre, then I wish you the best. I'd rather try and fail than have nver tried at all, but I'd be willing to bet I try enough to win, and win big.