If you're considering buying a new car, you may want to consider buying it this weekend. Buyers will be able to find model-year closeout deals this Labor Day as dealers try to clear out excess 2010 inventory.
CBS News Business and Economics Correspondent Rebecca Jarvis told Early Show co-anchor Harry Smith why the deals are going to be so good this holiday weekend.
According to Jarvis, the car dealerships are trying to move the old 2010 models out so they can bring in the new models. And buyers, she said, will get a great deal as a result.
"There's also zero percent financing for up to five years so you won't pay interest for up to five years, $3,000 to $5,000 in cash-back incentives, and you also get the best selection at this time of year," Jarvis said.
While there might be slightly better deals later on in the year, you may get an unfortunate color or something.
Which type of cars are the best deals?
"Almost any type of car will have some sort of incentive on it as long as it's a 2010 model and they're trying to get it off the lot. The compacts, from the Ford Focus to the Chevy Cobalt, those are looking at good deals because they are coming out with new models," she explained.
"Also trucks tend to have the best cash back offers. SUVs also in that category. Midsize cars, Nissan I'm told has a lot of 2010 models, as does Toyota. Remember all the problems they had earlier this year with Prius, this has good incentives," Jarvis added.
Jarvis also pointed out it's important to remember the type of deals and incentives you're getting, from cash back to financing, is coming from the manufacturers -- not the dealerships. Jarvis said you negotiate with the dealership on price. The manufacturers have the incentives.
What kind of resources can people use so they can be armed and really get the best deal?
• MANUFACTURERS' SITES
According to Jarvis, her No. 1 buyer tip, is "know before you go."
"Do your homework before you head to the dealership lot. Once you get to the dealership lot, you want to know the value of your trade-in so you're not just handing over a car and saying, 'Whatever you give me for it, I'll take.' You want to know that value," she said.
It's also important to know the incentives before you get there.
Jarvis added, "Lastly, negotiate on price with the dealership before you talk incentives. Because price is, like I said, where the dealership can come around and you can have a little negotiation. The incentives are set in stone."
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