FAQ Friday: Will Car Prices Rise or Fall? Is Now the Best Time to Buy?
Everyone wants to "time the market" with a new car purchase if they can, just like they try to do with stock prices or mortgage interest rates. That's why there are so many theories as to the best time to buy a car. Many of those theories aren't very reliable. What is true is that we are at moment in history where the factors influencing car deals have converged to make this an incredible time for bargain hunters.
One of the important things to remember, though, is that there is a lot of pent-up demand for new cars. Manufacturers have also cut back drastically on production. In the not-so-distant future, those factors will combine to drive the prices back up.
Where does this leave consumers who are trying to figure out when to make the jump?
Certainly, if you have a clunker, you shouldn't hesitate, because we're still waiting for Congress to authorize more money for the Cash for Clunkers program, which is quickly being drained of its allocated dollars.
But if you don't have a clunker and are trying to pounce at the right time, I recommend using our TMV Alerts, which show how the price on your chosen model is expected to change in the next 30 days.
For example, the price for a 2009 Hyundai Veracruz -- a strong contender in its class -- is expected to drop 2% or more in the next 30 days, and that's worth waiting for. Most Infinitis are also going to drop significantly. Interestingly, the 2010 Lincoln Navigator price is predicted to drop, but the 2009 Navigator price is predicted to rise. And if you're looking at a Pontiac Vibe, the prices for both the 2009 and 2010 are both predicted to rise, despite Pontiac's demise.
So even though this is a great time to buy generally, TMV Alerts help you to decide the best time to buy the specific car you're interested in. That's as close as you'll probably get to "timing the market" in today's volatile car shopping environment.
- Posted by
- Joanne Helperin July 31, 2009, 11:00 AM
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- Categories:
- Car Advice Articles, Car Buying, Tip of the Day
- Technorati Tags:
- Buying Cars, C4C, Cash for clunkers, New Car Buying
Buyers should keep in mind that production on nearly all 2009 models has ended, so inventories and selection will continue be depleted.
If you are particular about your options and/or color choice (and who isn't?), you should take this into consideration when deciding whether to wait or pull the trigger now.
Buyers should keep in mind that production on nearly all 2009 models has ended, so inventories and selection will continue be depleted.
If you are particular about your options and/or color choice (and who isn't?), you should take this into consideration when deciding whether to wait or pull the trigger now.