• Buying a car

  Filed under Economy
  Jan 16

  Buying a car is similar to buying a house. Typically, both are large ticket items that require credit to make the purchase. When buying a home, the bank will usually loan you the money in the form of a mortgage. When purchasing a car, usually the dealer will over you financing. A layaway of sorts. Well we all know how dramatically home purchases have changed, so does that mean a change in car buying as well?

  The answer is an emphatic yes! Dealers are offering huge incentives they have never offered before. Detroit auto makers are offering 0% financing, up to $7,000 cash back and so on. Some places in Michigan were bundling up cars and homes to try and sell both. The economic situation is really taking its toll on a number of industries.

  So how does this affect you? This is what is called a buyers market. That means the market very much favors the buyers, not the sellers. Do not hesitate to go into an auto dealer and negotiate a price. They will be surprisingly willing to work with you. Do some homework and see what the car you want is going for. Then walk into the dealership, ask them about their incentives, and make them an offer lower than what you expect. They will counter it with an offer higher than you expect. You come back with the price you really think you ought to pay, and you’ll get surprisingly close to that.

  So feel free to take advantage of these tough times. Whether buying a car or anything else, people are desperate to make a sale. So know the ins and outs when going in and work a deal. No one knows how long this market is going to last, so if you are contemplating buying a new car, 2009 just might be the best year to do it.

  Tagged as: cars, Economy
  
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