The rocky economy has something going for consumers, especially those in the market for new cars. End of model year incentives will be terrific, providing the opportunity for savvy consumers to save a lot of cash on their next set of wheels.
And, the model year doesn’t just change in October anymore. Throughout the year automakers are releasing new product, and slashing prices on the old. The best deals can be had with last year’s model which could still be a 2008 if the 2009 has already been released.
If you are planning to buy a new car, there are some thing you will want to keep in mind before making your purchase:
Do your research. Quite frankly, not all cars are the same. A Kia retailing for $14,900 and a Toyota priced the same share one thing only: price. The Kia likely is better equipped, while the Toyota has a better reputation. Check Consumers Report and pay the $6 they want for their advanced ratings and reviews, an investment certainly worth the price. Search online for additional information about that make/model.
Check for incentives. Almost across the board, all manufacturers are offering incentives. Popular models are typically not included, but then again the Ford Focus is on sale and carrying a cash back rebate that will vary upon your location. Last month, the incentive was $1500 on a car that gets 35 mpg! Use an automotive financing tool to help you compare offers.
Pay cash if you can. If you’re able to pay cash for your purchase, you should be able to negotiate the best deal possible while also taking the rebate. On the other hand, if both zero percent financing and cash back are offered, then finance your car for the highest amount possible. Then, take your cash and let it earn interest in a high rate savings account at ING Direct or elsewhere paying 3.5% or better on your money. Another alternative is to secure auto financing on your own and keeping the rebate.
One final thought as to why you should buy your car now: incentives are the strongest they’ll be for quite some time and some manufacturers are planning to increase the price of cars beginning this fall to recoup the cost of additional safety and technological improvements featured across the board.
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