Is Now a Good Time to Buy a New Car?

There seems to be a lot of good deals on vehicles at this point in time and you are thinking that now might be the time to purchase a new car.  Also, in the stimulus plan of 2009, one of the benefits is to be able to deduct interest on a new vehicle that is purchased between now and December 31, 2009.  Sweet deal, right?

Maybe and then again, maybe not.  There is still reason to advance in a cautious manner when looking to make a vehicle purchase.  While car dealers are still smarting from low sales volume that does not mean that you will be able to walk out of the showroom with your payment on your terms.  They still have to pay for the vehicles they sell and they will not be inclined to take a loss just because you want a good deal.

On the other hand, if you factor in dealer and buyer incentives, you can find some very good prices that were not available even a year ago.

Visit your existing vehicle arrangement.  Before you go looking for a new vehicle, look at your existing one.  Do you still owe money on the car?  If so, how much?  Are you ‘upside down’ (owe more than the vehicle is worth)?  Do you have any cash that you can put down on a new vehicle?  Can you afford the payments that will accompany a new car?  These are all good questions to answer before you proceed.

Investigate what to purchase that will meet your needs.  Look at your personal situation and determine what kind of a vehicle will meet your needs.  If you have family, those demands will be different than if you are single.  Where do you drive and how much do you drive are both good questions to answer.  Also, how important is economy and resale value to you?  Do not forget to factor in reliability in the purchase of a vehicle.

Check around for the best pricing.  Here is a little tip:  not all cities and towns across America have the same deals.  That is not earth-shattering news, but suffice it to say that you probably will find better deals in larger metropolitan areas.  This is simply because of competition.  In smaller towns, dealers are less inclined to deal simply because they might be the only (or one of the only) places in which to purchase a new car.  Also, their standing and reputation in the community might keep them from discounting more than they could.  They do not want to be known as that kind of a dealer.

Be sure to arm yourself with information that you have looked up on the Internet which can help you in your quest.  Be patient, and do not jump on the first deal that comes along.  Remember, you are in the driver’s seat (so to speak) and if you proceed with caution, you can come away with a good deal on a nice new car.  Good luck.