Auto Trends

While most people are holding onto their wallets right now and rightfully so, but if you are in need to ditch your clunker and get a new car… now couldn’t be a better time!

Yeah, you heard right…

Just like the real estate gurus (Robert & Kim Kiyosaki for example) of the housing market have been professing, there is really no better time to get rich off of great deals than during a recession. It is like there is a giant nationwide sales event!

Imagine yourself as if you were at your local grocery store and the butcher announced a sale on prime rib at $.01 a pound. You’d probably be one of the first to head over there, barring you aren’t a vegetarian of course. Well, the housing market is offering quite the sale opportunity these days and so is the new vehicle market.

Now bare with us as a new car purchase could hardly be called a good investment, so we are not advocating that in the least. We are simply reminding you that there are some great deals if you are going to be in the market to buy soon anyway.

There will be one key factor to your success rate however… credit. How is your credit?

If it is pretty squeaky clean then dealers will be ready to sit down and bargain a deal of a lifetime. Car sales have tanked for the most part and dealers are currently more than willing to “deal” if it means getting rid of some of their lingering inventory.

If it is not squeaky clean, then quietly fold that wallet back up and continue with your day and pretend you never heard the words “new car”. You’re going to be stuck with that clunker for a few more years. Similar to the mortgage scene, vehicle lenders have increased their scrutiny on who can qualify for a loan, and you will pay dearly on your interest rates if you would try to get a loan now.

For those of you with your wallets still out, you’ll need to concentrate on getting the best deal you can on the sale price and sale price only. Don’t get caught up in their recession gimmicks, like free gas, etc. Especially don’t let the dealer fool you into thinking you are getting a better deal by stretching out your loan term. This is a common tactic (up to 80% of loans today are over 4 years) that dealers have used during a slow economy to give themselves a boost in sales.

This not only ensures you will be paying more interest, but you will also be upside down (owing more on your car than it’s worth) for some time.

There are a few better cars to purchase then others right now, so if you play it smart and do your homework you can walk away with a once-in-a-recession kind of deal!