Today might just be the best day ever to buy a good cheap car. A cheap new car, that is. It’s no secret that these are tough economic times, money is tight, unemployment is up and sales are down in most retail markets. The marketplace for new automobiles has been one of the hardest hit areas of the economy as consumers postpone plans to purchase new vehicles in the climate of uncertainty.
The dealership lots are overflowing with unsold cars and trucks in every region of the country and it might be a bad time to be selling, but it could be a great time to be buying. Nearly every automobile manufacturer seems to be dropping their prices to bare minimums and throwing added incentives at buyers to sweeten the deals. New car sales are down over 40% overall this year and the result is a buyer’s market with low interest rates and a lot of great deals on new cars, trucks and SUVs. If you have been considering a new vehicle purchase, now is the time to get out there and shop around.
Manufacturer incentives are most commonly available to consumers in the form of rebates and/or low-interest financing. The manufacturers also offer marketing support incentive programs direct to their dealers who can pass additional savings on to buyers if they so choose. In most cases consumers are offered a cash rebate or low-interest financing, or both, depending on the manufacturer. The cash rebates can be used as part of the down payment or simply pocketed. Low-interest financing rates will vary according to the manufacturer and your credit rating.
The latest round of incentives to be offered by a few creative manufacturers have appeared as job-loss protection programs. These programs offer a bit of security to buyers who may be worried about losing their jobs and getting stuck with a new car they can’t make the payments on. In January, Hyundai was the first brand to offer a program that covered car or lease payments for a specified amount of time should a purchaser lose their income through job loss or other financial hardship. Hyundai’s creative offer covered up to three months of payment assistance and allowed purchasers to get out of a deal altogether and return the car at no extra cost.
Ford and General Motors quickly followed suit and jumped on the bandwagon with job-loss protection programs of their own. The details of each manufacturer’s program vary, but basically all three are similar in that they offer a specified length of coverage for buyers’ who have lost their jobs and are eligible for unemployment benefits in their state of residence. Ford offers to cover payments up to $700 for as long as 12 months. The GM plan covers payments up to $500 for six months. More manufacturers are expected to adopt similar programs in the near future. Any way you slice it, there are plenty of attractive incentives available on new vehicles out there right now.
