Consumers, start your engines. There is still time to get a
great deal on a new car.
With interest rates still at historical lows, buying a new car
is an attractive option. Even though the Feds have raised the
interest rates several times over the past eighteen months, they
are still lower than they were in the 90s and are certainly at a
favorable rate for great financing. Someone with good to
excellent credit who is looking to purchase a new vehicle should
do so now, before the rates go higher.
The sale of cars in the U.S. remains very strong, despite an
overall decline in many sectors of the national economy. Even
the red hot real estate market has started to trend downward,
but the sale of automobiles continues to speed on. With the
threat of more rate hikes, the cost of the recent hurricane
disasters, rising unemployment and inflation, the continuing
high car sales are an important gauge of consumer confidence.
However, recent indicators show that that confidence is falling,
making the last quarter of 2005 the time to purchase a new
vehicle, before the beginning of a new year and a very uncertain
future.
Along with the low interest rates is a new buyer incentive
program, which has been seen all over the television this
Summer. Certain car manufacturers have been offering their
"employee discounts" to the general consumer. In other words,
the discounted price paid by an employee of the car company has
been passed on to the general public. This has been very
successful, resulting in an upswing in car sales so substantial
that the offers have been extended. These are American companies
offering this type of saving. Foreign cars, Japanese in
particular, traditionally sell well without incentive programs.
The end of the year is typically a good time to buy a new car
anyway. From September on, dealerships are trying to clear off
their lots to get ready for a new shipment. This, along with the
current low rates and incentives, makes this time a great one
for buying. Business for car dealerships tends to slow down
around the holidays, making for extra consumer leverage in
getting the perfect deal.