How to Find a Deal on a New Car
Even in a dismal economy, some of us need to buy a car. While the prospect of shopping for such a big ticket item during a recession may seem a bit daunting, there are some great deals to be had. The key is to educate yourself on the latest news -- including General Motor's bankruptcy filing -- and sniff out where you can find the best bargains.
To make your job a bit easier, I've gathered some timely tips from auto experts across the web. Here's what I've found about deals on both new and used cars:
Some New Cars are Cheaper than Used Cars
A new car typically loses as much as 30% of its value the moment you drive it off the lot. That's why penny pinching experts so often recommend drivers buy a slightly used car versus the latest model.
Edmunds.com, however, is debunking this sage advice. The auto website says the 2009 deals on some cars are so generous that it put together a list of new vehicles that actually cost less to purchase and finance (based on a 60 month loan) than the same, one-year-old used models.
Notable New Cars:
Model Savings vs. Used Model
- BMW 3 Series 328i 4dr Sedan $2,340
- Honda Civic LX 4dr Sedan $660
- Toyota Highlander Hybrid 4dr SUV $1,800
- Volvo X C70 3.2 4dr Wagon $2,880
You've probably heard that now's a great time to get a bargain on a car from a GM or Chrysler dealership that's going out of business. But you have to act quickly, and be comfortable with two things. First, you should plan to drive the car or truck for more than five years since these vehicles will likely have a low resale value. Second, you may have trouble finding a dealership that will honor the warranty.
Also, Consumer Reports put together a list of the Top 40 Best Deals on American Cars. A 2009 Nissan Titan SE 4X4 Crew Cab SWB, for example, is now going for 25% less than its listed MSRP price. (Yes, it's made in America.)
Used Car Bargains - Buying Status at a Lower Price
Last summer when gas prices were through the roof, it seemed everyone wanted a hybrid. The gas-sipper of choice was the Toyota Prius and you couldn't get your hands on one. Now Edmunds.com points out that there are plenty of used models to choose from and you no longer have to pay a steep premium to own one.
If a sports car is more your style, now's your chance to buy a used Porsche 911 (1999 to 2004 model) for a steal. According to Edmunds, "one of these can be had for about half the cost of a mileage- and condition-equivalent 2005 and up version."
Do these deals make you more likely to buy a car? If not, what would the auto makers need to do to get you to consider a new set of wheels?
Also see my blog from last week, when I discuss affordable cars for teenagers.
keys image by redcherryhill, CC 2.0.