Savvy Shopper: Is this a Good Time to Buy? Shopping with a Clunkers Hangover
It's time to ponder the eternal question: is this a good time to buy a car? There's no doubt that "Cash for Clunkers" has left us with a hangover. Incentives are down and prices are up. A bad combination. But the good news is that it won't last forever. And there are ways to get a good deal.
First of all, you should know that this time of year things are usually heating up on the car lot. The new models are arriving and last year's models are being discounted. As we move deeper into the fall, the discounts will be even better.
But this year is different. The Cash for Clunkers incentives was immediately factored into the purchase price of a new car and dealers increased their asking prices. But as car lots have emptied again, pricing will react to the new reality. But it might take time.
Your best tool is Predicted True Market Value which shows whether prices on the car you want will be rising or falling. Also, take a look at current incentives. If you don't like what you see, keep in mind that incentives are monthly and react to current market conditions. With sales down in September, incentives will flare up again in October.
Finally, remember that your best tool to getting a good price is simply to shop around and test the market. By contacting multiple dealerships through Dealer Locator, you can quickly get a picture of local prices.
Perhaps the best answer to the question "When is the best time to buy" is simply this: when you really need a new car. After all, necessity is the mother of invention.
- Posted by
- Philip Reed September 21, 2009, 7:36 AM
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- Car Buying, The Savvy Shopper
C4C left dealerships low on used vehicle stock... so they're hurtin' there.