Ask The Beaverton Car Guy: Why is This a Great Time to Buy a Car?
By Larry “The Car Guy“ Ferguson
Hello Beaverton readers!
If you’ve been thinking about a new car but haven’t felt ready to take the plunge, don’t put it off any longer, because the deals won’t get better any time soon.
Everybody knows the three factors that influence new car deals:
- New car prices and incentives
- Interest rates
- The value of your trade in.
When incentives or trade-in values peak, it’s a good time to buy a new car. When interest rates drop, it’s a good time to buy a lot of things. Rarely do all three factors converge as clearly as they do today.
Many advertised prices are not the absolute best prices we can get today. The smartest thing we can do in today’s automotive market is to do some research to narrow down your choices then contact a reputable broker.
Why a broker?
When a dealership deals with an individual, they often make top dollar since they know the average person uses limited negotiation skills based on limited automotive knowledge. With a broker however, the dealerships know that they have to offer a competitive take it or leave it price. If the price does not make the broker happy, the broker can easily move on to another dealership. Worse though, if a dealership plays tough with an individual, he may lose one car sale but if he tries the same tactics on a broker, they could lose the dozens of new car sales a broker could bring each month!
Built up inventory
For now, that built-up inventory can also help give you a great selection of colors and options to easily find what you’re looking for – especially if you’re looking for a sedan.
Since the recession, sales of pickups, SUVs, crossovers, and minivans have exploded from just 35 percent of the market during the recession to around 60 percent today. Sales of midsized sedans have dropped 16 percent, even as total car sales have risen. The automakers, with billion-dollar factories and years-long planning processes, haven’t been able to adapt quickly enough, leaving excess sedan production stacking up on overflow lots.
Great financing options
Currently lenders are competing for peoples business, so going out and getting pre-approved for an auto loan is ridiculous. In most cases the dealership can obtain better financing for the client than the client can get on their own. In addition, the manufacturers usually offer better financing than what any bank or credit union can compete with.
Then we have the huge amount of 2017’s on the lots as the 2018’s are arriving. The new 2017’s will have dealer cash or rebates, while there will be zero incentives on the 2018’s. So clearly the dealerships want to move the 2017 inventory as quickly as they can. There also will be incentivized interest rates ranging from 0% to 1.9% On most import vehicles.
Thank you to all who have reached out in recent months for assistance in purchasing a new or pre-owned vehicle. Also thank you to all of you who have asked for my help in selling your vehicles, so you did not have to settle for trade in values. I can be reached by phone (503) 930-1493 or email: email@example.com