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Topics: Buying New Cars |
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| Is Now a Good Time to Buy a Car? |
Submitted by:
Tip Hero 04/24/2009 11:05 AM
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Well, according to the folks over at Mint.com, it might be. In fact, they provide 7 Reasons Why Now’s the Time to Buy a Car (actually, more like 6, as #7 does not really make it a good time to buy for us individuals, but we like their spirit anyway).
One important note right off the bat: They're talking new cars (more on used cars in a minute). Perhaps the most important point they make is the following (#2 in their list):
Many auto companies are offering employing pricing or huge rebates. Some, like Chrysler, are even offering both. Shop around, because the lure of employee discounts may not necessarily equate to the best deal. This kind of generosity surely won’t last. Post restructuring and adjustment of production levels, automakers won’t need to unload inventory at the expense of profit, like they are right now. You’ll find domestic automakers offering much larger discounts than foreign at this time because they are finding it more difficult to deplete their excess inventory. This makes sense to us. It's kind of the value investing (e.g., Warren Buffett) approach to car buying: Buy when there's fear and uncertainty in the marketplace and prices are deeply discounted (and, in this case, there are big incentives too). The nice thing here is that the government is providing somewhat of a backstop for domestic automakers, so your downside risk is likely to be minimal.
Here are the headlines for Mint.com's 7 Reasons Why Now’s the Time to Buy a Car, but we encourage you to click through to the article and read what they have to say about each:
1. Sales Tax Deduction
2. Huge Rebates
3. Zero-Percent Financing
4. Government Backed Warranties
5. Payment Protection
6. Future Inflation
7. Stimulate the Economy
But we realize that most of us/you don't have the means and/or the desire to buy a new car right now. In fact, there are a lot of perfectly good used ones out there that might be much better values.
We came across an article on Yahoo that lists The Best Cars for $10,000. Among their favorites:
- 2005 Ford Escape
- 2005 Ford Five Hundred
- 2005 Ford Freestar
- 2005 Ford Taurus
- 2005 Hyundai Tucson
- 2005 Hyundai XG350
- 2004 Ford F-150
- 2004 Hyundai Santa Fe
- 2004 Mitsubishi Outlander
Who knew 2005 was such a good year for quality cars? The article also provides information about why they like each car. And they explain where the list came from:
We crunched reliability and crash-test scores. We considered standard and optional safety features and looked at how easy it is to find cars with those options. Finally, we considered gas mileage along with our own qualitative impressions — things such as cabin comfort and driving enjoyment. And if you're really looking for a deal on a car, be sure to check out this article:
15 Beater Cars That Won't Disappoint
Bottom line: If you're in need of a car, now may be a really good time to consider buying one if you have the funds. But, as always, shop around and do your research. Good bargains can be had, but there are still many ways to get ripped off and over pay.
And please share with us any car buying tips you have by posting a comment below.
Photo credit: The Consumerist |
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