Consumers shopping for a new car are probably aware that some spectacular buys are awaiting them. This is due mostly to a market that has basically collapsed, forcing car manufacturers to slash prices in a bid to move inventory. Most manufacturers are posting discounts amounting to thousands of dollars off of the sticker price, deals that won’t be around when manufacturers complete the readjustment of their inventories to account for the reduced demand.
Unsold Goods = Big Buys?
Some buyers are hoping that with Chrysler and General Motors slashing dealerships that they’ll be able to purchase a car at a fire sale price from a dealer about to close down their operation. That scenario may or may not happen as both companies don’t want prices to collapse. Instead, each manufacturer could end up buying back unsold inventory or other dealers may step in and purchase unsold inventory.
Regardless of how everything shakes out in the months ahead, you can save money on a new car by keeping some things in mind including:
Buy What You Want, Not What Is Cheap — Both General Motors and Chrysler are offering the biggest discounts in the industry along with government backed warranties. With prices so low you could be tempted to buy something that is cheap, but is it what you really want? Likely, you’ll be keeping your car for many years so only purchase the vehicle you know that you can live with five years or more down the line.
Comparison Shop — One of the problems experienced by GM, Chrysler and Ford is that they have too many dealers in the same geographical area competing with each other. Tight competition lowers profits, but it makes for some good options for consumers seeking a deal. Get quotes from three dealers to see what is available for you; you could save hundreds of dollars if you shop around.
Should You Buy Used? — A late model used car sometimes represents the best value of any car on the dealer lot for the simple reason that these cars often reflect their price depreciation. However, some new models are moving at prices that have been lowered to take in depreciation, making the new car much more enticing than the one or two year old model with 25,000 miles on the odometer.
Dealer Service After The Sale — Once the sale has been finalized, who will service your car? If you are buying your new car from a dealer facing closure, where will you take your car to be serviced later on? Other GM dealers can service your new Pontiac, but if Saab, Saturn and Hummer shut down, will you be left with an orphaned model?
Consider What Your Dealer Is Going Through
Inasmuch as you stand to end up with an excellent deal, if your dealership is slated to close, don’t insult them by offering a ridiculously low price on a new car. Employees may be facing the prospect of losing their jobs or being transferred to another dealership many miles from their homes. You want to get a great deal, but you need to consider that for some salespeople they’re about to lose their jobs.
Adv. — If you are considering purchasing a new car, there are some steps you can take to make sure that you get the best deal. Come on over and visit SayLending.com for auto loans information including new car research to help you find the vehicle that meets your needs.
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