Car buying these days isn’t easy. Lenders are tightening their belts and offering fewer loans, not to mention offering fewer leases. Some automakers such as Chrysler have even cut out leasing programs completely. To make matters worse, trade-in values have also plummeted, particularly for trucks and sport utility vehicles.
Despite the adverse market conditions, the fact remains that it’s certainly a buyer’s market. With car dealers hurting, they’ve become desperate to sell cars. Because of this, potential car buyers can expect to see substantial discounts when they head to dealerships.
Many automakers are offering plenty of incentives these days, in many cases saving buyers thousands of dollars. For example, Toyota is now offering 0 percent financing, which Toyota dealers Olympia says is uncharacteristic of the automaker as such as promotion is more commonly found among domestics. Trucks and SUVs especially have seen huge discounts among Detroit Chevrolet dealers, in some cases tens of thousands in discounts.
While it may be a buyer’s market, auto sales continue to fall each month, with auto sales reaching their lowest point in decades. Although fresh 2009 models are not hitting the showrooms of Boston Infiniti dealers and other dealers across the country, many 2008 models remain unsold on dealer lots. This has placed a huge strain on dealers as the cost to finance these vehicles is steep, and having them sit unsold for longer periods of time has placed a heavy toll on many dealerships. In fact, hundreds of dealerships are expected to go out of business by year’s end according to the National Automobile Dealers Association.
With all the turbulence in the current auto market, how exactly should one go about buying a new car? Just as importantly, what should be done with your old car? These are important questions in the current unstable economic atmosphere.
Perhaps the best place to begin is to explore your financing options. Regardless of whether you have good credit or bad credit, your financing options may be limited, making it wise to begin shopping for financing first. Needles to say, however, those with bad credit may have a little more difficulty says Bad Credit Car Loans Chicago, especially considering some lenders, such as GMAC, will no longer consider shoppers with credit scores below 700.
If you are fortunate enough to have solid credit, you’re likely to find an easy approval process and even some pretty attractive interest rates for your new car. For those with less than ideal credit, you may be looking at having to put a 15 percent down payment on your vehicle to qualify. While a new car may be tough to secure financing for, used cars Nashville dealers say that a pre-owned car is usually easier to get financed.
Shop for a car loan before you shop for the car to help save money and make the process a bit smoother. There are plenty of websites that can help you shopper for a loan online, such as E-Loan. Your local credit union or bank may also be offering attractive rates.
Finally, pay a visit to the dealership. In many cases you may be able to find better financing options elsewhere, so it will be advantageous to secure financing before stepping on the lot. However, some buyers of certain makes, such as Nissan or Toyota, may find 0 percent financing available if they have an excellent credit history, which has made Nissan Saint Louis customers quite relieved upon their new car purchase.
Another important aspect of the financing process to consider is the length of the loan period. If you intend to hang on to the car for much longer than six years, then you shouldn’t have a problem. But if you’re looking to buy a new car in three years, Toyota dealer Hays warns that a longer loan may not be a good deal.
The problem with longer loans is that a vehicle depreciates so quickly over a long period, and you may end up paying much more than the vehicle is worth.
Consider what you’re going to do with your current vehicle. Detroit Chevrolet dealers warn that if your current vehicle is a truck or SUV, you may find that you vehicle isn’t worth nearly has much as what you paid for it. The value of pickups and SUVs, for example, has fallen by about 23 percent compared with last year. With that in mind, prepare for some bad news. While you may want to get something brand new, the steep depreciation is another reason to consider holding on to your current vehicle. Check out Kelley Blue Book to see what your vehicle is worth and the decide what your next move will be. Some of Durango Toyota customers have even considered finding an online Toyota parts store and simply investing in fixing up their current vehicle.
In today’s economy it’s the wisest move is to think conservatively. When buying a car, take your time and shop for the best deal possible.
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