On The Fence? Time to Buy!

Right now is the best time to buy a new or used car from a dealer. Lots are crammed with cars and dealerships are empty of buyers. Associated Press says 700 dealerships may close this year (see video below). Credit is tight, and consumers are cautious. Even buyers with excellent credit scores around 720 who in the past would have no trouble getting fully financed are having to come up with substantial down payments of 10-20%, according to two of the dealers we talked to.

If you have some cash and a decent score, dealers gotta move cars; if you’re in the right place at the right time, that car is going to move from the lot to your garage for some of the best prices people have seen.
According to research I’ve been doing over the months, the end of the month near the end of the year is the best time to buy. That would be now in a typical year. But we do not live in typical times. People are fearful of what might happen in the economy next, and afraid to let go of what little cash they may have.

For dealerships to stay in business, and not be one of those 700 which don’t, they have sales quotas and goals to make as well as interest payments to make on all those sparking chariots hanging around on their lots.

This is one case where the economic crisis can benefit you. Information like this got us off the fence and making the rounds of the dealerships the past few weeks. And we made a great deal!

In posts to follow, I’ll take you to the following dealerships: GM, Saturn, Toyota, Honda, Subaru, Land Rover, and on-line, and discuss some of the finagling and financing which went on.

Vodpod videos no longer available.