Summer Deals In A Hot Car Market
With auto sales scorching this year, the simple law of supply and demand would suggest that great deals would be harder to find than normal. With vehicles moving briskly off the lots, there is less motivation to offer strong incentives. To a large extent this is proving to be the case in the marketplace, but that doesn’t mean there still aren’t some deals to be had out there.
The Wall Street Journal investigated the car market and found there are still some savings to be found. Here’s where:
Why are some leases a good deal right now? Along with the hot new car market, used car prices had been increasing. This in turn raised residual prices (the pre-arranged price that the leased car is worth when returned), thus dropping monthly payments. [With a lease, you’re essentially paying for the difference between what the car is worth new, vs. what it’s worth when you return it. Plug some numbers into our handy lease calculator to see the effect.] But act quickly. Used car prices have started to fall, particularly in the compact and midsize segments.
Low Interest Loans
Credit is still really cheap, and that extends itself to the new car market. There are several 0% finance offers out there, including every Volkswagen model (except diesels). The Lincoln MKZ and Toyota RAV4 are also offering 0% financing. Be sure to check the manufacturer’s website for the most recent deals.
Bigger vehicles frequently have the bigger incentives, and there a a couple of examples available now. $4500 cash on a Chevy Avalanche, for instance. Or $3000 on a Ford Expedition. Again, the manufacturer’s website is your friend. Look for the deals.
Vehicles that are due for a full redesign present a conundrum to dealers. While everyone is getting all hot and bothered for the new model, there’s still inventory of the old model to clear out. [See our previous post on Model Changeovers.] That means big savings for consumers. Look for big cash back offers on 2012 models of the Chevy Impala and Malibu, Ford Escape, and Nissan Altima.