• Skip to content
  • Skip to primary sidebar

Auto Trends Magazine

Car reviews, industry news, & advice.

NEW CAR

A Buyer’s Market for New Cars

May 5, 2016 by admin Leave a Comment

How to buy a vehicle in any market.

New car sales remain strong, but one thing we are seeing more of this year than in recent years are deep discounts and other incentives to lure customers. Although most deals aren’t rivaling anything we have seen since the last recession, automakers aren’t all that willing to cede marketshare in good times.

2016 Chevrolet Silverado
2016 Chevrolet Silverado.

It is a buyer’s market for new car shoppers. Here’s how to find a deal you can live with:

1. Know what you want. Determine the type of vehicle you want and then narrow it to a specific make and model. The narrower your search, the easier it is to do your research. This means choosing the trim level you want, right down to the amenities — power accessories, infotainment system, safety features, you name it. Allow your parameters to guide you and you’ll be satisfied with your new ride.

2. Shop online. There is no need to visit a dealership to make your deal. Save your visits to only test drive a vehicle or to finalize your already negotiated purchase. Typically, you can find what you want by shopping online, negotiating with the dealer’s web sales department to get your price. Next, repeat the process at one or two other dealers, then have the dealers battle for your business. The more competition for your business, the better the savings for you.

3. Arrange your own financing. Unless the manufacturer is pushing 0 percent financing, you can usually find better financing elsewhere. Credit unions are especially good at offering low-rate financing, particularly if your credit is excellent. When you bring in your own financing, you can claim the other incentives instead, such as cash back, a military or student discount, or some other incentive.

4. Discuss new car price, then talk trade-in. Don’t allow a salesperson to attempt to bundle your trade-in with your new car negotiation. These are separate deals. First, negotiate the best price for your new car. Second, when it comes to down payment talk, introduce the trade-in as the down payment. Understand your car’s worth by using a service such as NADAGuides.com or Kelley Blue Book to value your vehicle.

5. Review all fees. You’ll be hit with an assortment of car closing fees, adding hundreds, perhaps thousands of dollars to your final price. Sales tax, title and registrations, destination charge and documentation fee are not avoidable — you will have to pay these. Expenditures you can avoid include a dealer preparation fee, credit life insurance, disability insurance, VIN etching, rustproofing, and paint sealant. Additional dealer markup may be hard to avoid, especially if you’re buying a strong selling model. As for that advertising charge, see if the dealer will waive it. Examine your sales contract carefully to determine what fees are charged. Ask for an explanation for anything you may not understand.

6. Finalize your deal. With your best deal negotiated, financing in place, and a trade-in or cash down (preferably both), you’re ready to finalize the deal. It is extremely important for you to know what your monthly payments will be and whether you can afford those payments. Don’t sign the deal without having a discussion with your auto insurer first — you may be unpleasantly surprised to discover you can’t afford the insurance. If so, you’ll need to look for a different insurer or a different car.

A Buyer’s Market

Timing your purchase can help your cause too, especially if you strike a deal as the month comes to a close. Sales people and dealers rely on incentives from the manufacturer to sell “X” number of vehicles each month. This tactic can work well and might be utilized instead as both the model year and the calendar year come to a close.


See Also — Right Now: Lease a New Car

Filed Under: Automotive News Tagged With: bank loan, CAR SHOPPING, DEALER, FINANCING, NEGOTIATION, NEW CAR, SALESPERSON

Right Now: Lease a Used Car

April 25, 2016 by admin 4 Comments

Leasing deals on new cars can extend to used cars too.

Soaring new car prices mean sticker shock is a common occurrence for car shoppers. One way to lessen the blow is to lease a vehicle. Indeed, Experian Automotive found that 28.9 percent of all new vehicle models were leased in the fourth quarter of 2015. That’s up nearly 10 points in just over five years.

Leasing lowers the average monthly payment, one of the most important concerns for new car shoppers. Instead of paying $493 on average for a new car, lessees pay $411 per month for theirs. That’s $82 per month or $984 per year saved, or nearly $3,000 across the average 36-month lease term.

2014 Buick LaCrosse.
2014 Buick LaCrosse.

Used Car Leasing

Used car shoppers are also looking at ways to reduce their costs. Although representing a relatively small segment of the market, used car leasing is available. Leasing a used car provides the usual advantages of leasing — low monthly payments and an easy way to return the car and walk away.

An emerging trend in the industry is leases on certified preowned vehicles (CPOs). CPOs are popular with consumers as these models have passed dealer inspection, are backed by the manufacturer, and include the balance of the warranty, and sometimes include some type of an extended warranty. CPOs cost consumers more, but that’s a trade-off many are willing to accept.

2014 Toyota 4Runner.
2014 Toyota 4Runner.
This year, returning leases will increase by 20 percent over last year and will continue to rise for at least the next two years. That presents a problem for dealers as bloated inventories are harder to move. To combat the trend, some manufacturers, including Toyota and BMW as well as Ally Financial, are pushing used and certified leasing in anticipation of an increase in lease returns reports Automotive News.

Toyota’s arrangement covers Toyota, Scion, and Lexus brand vehicles. CPO Toyota and Scion used car leasing will be limited to vehicles no older than three model years and 65,000 miles. Lexus CPO leave vehicles will extend out to four years, but be limited to 60,000 miles.

New v. Used Sales

Of course, any CPO used vehicle program could do something no manufacturer wants — siphon new vehicle sales. Likewise, dealers are being instructed to avoid being as aggressive in pushing used vehicle leasing as they are in selling new. Extra incentives and higher profit margins on new cars also help.

Industry experts are looking favorably on used car leasing, seeing it as a win for customers and dealers alike.

“Certified lease programs are not only inevitable as a result of all the leases coming back into the market, but they can be beneficial as well,” said Scot Hall, Executive Vice President of Swapalease.com. “Drivers today want more flexibility in their lease programs, and a certified lease structure adds more opportunity for an expedited turnaround of inventory beyond just three years of age on a vehicle.”

2014 BMW 535d.
2014 BMW 535d.

Consumer Leasing Considerations

Consumers should always keep in mind a few things about any used car. For one, services problems are about twice as high on a three-year old car than on a one-year old model explains Consumer Reports. Also, the anticipated value of a used vehicle at the end of the lease term will impact your rate.

You might do better pursuing vehicles that hold value, including luxury vehicles, sports cars, and SUVs. That’s why Lexus and BMW are aggressively pushing CPO leases, but they’re not the only ones.

As with any used vehicle, obtain a history report. It also doesn’t hurt to have it inspected by a mechanic who can place the vehicle on a lift and give you his assessment. Use that feedback to negotiate your price — the lower the final cost, the lower your monthly lease payments.

See Also — How to Lease a Demo Car


Photos copyright Auto Trends Magazine.

Filed Under: Automotive News Tagged With: AUTOMOTIVE NEWS, CONSUMER REPORTS, CPO, EXPERIAN AUTOMOTIVE, LEASE VEHICLE, NEW CAR, SWAPALEASE.COM, USED CAR

  • Page 1
  • Page 2
  • Page 3
  • …
  • Page 6
  • Next Page »

Primary Sidebar

Social Media

Visit our social media pages:
Facebook
Twitter
Google+
Pinterest

Where is Matt Currently Published?

CARFAX (new car reviews)
NAPA Know How Blog
On the Road Again

Meta

  • Log in
  • Entries RSS
  • Comments RSS

Pages

  • About
  • Automotive Brochures
  • Contact
  • Write
    • Style Guide

Categories

Recent Posts

  • Rivian Automotive Draws Interest From GM, Amazon
  • All-New 2020 Subaru Legacy Steps Up
  • Ram Chassis Cab is Here and Brings With it Class-Leading Numbers
  • 5 Tools To Help Safer Driving In Winter Weather
  • Live! From the 2019 Chicago Auto Show!
  • The Sedan is Dead:
    Long Live the 2019 Nissan Altima!
  • About the 2020 Toyota Supra
  • The Last Hurrah: Hyundai Santa Fe XL
  • Off-Road Warrior:
    Jeep Wrangler Unlimited
  • A Trio of Cadillac Crossovers
  • Compact Luxury Crossover: Cadillac XT4
  • At a Glance: 2020 Ford Explorer
  • Longer Range Nissan Leaf Debuts at CES
  • Going Rogue in Nissan’s Popular Crossover
  • It’s a Wrap: 2018 in Review
  • The Fifth-Generation Subaru Forester Remains a Strong Contender
  • Where Luxury Meets Performance:
    Audi SQ5 SUV
  • The All-New Toyota Avalon Hybrid Combines Luxury With Efficiency
  • Generation Four: 2019 Hyundai Santa Fe
  • Handsome Wagon: 2019 Volvo V60
  • Book Review: Mustang by Design
  • New and Improved! 2019 Infiniti QX50
  • Highlights of a 2019 Toyota C-HR
  • Return of the First-Generation Ford Bronco
  • 2014-2018 Jaguar F-Type Buyer’s Guide
  • Family Efficiency: 2019 Chrysler Pacifica Hybrid
  • Polestar Powered: 2019 Volvo S60
  • Small Nissan Crossover SUVs:
    Kicks, Rogue Sport and Rogue
  • Like a Rock: 2019 Chevrolet Silverado
  • New and Improved: 2019 Acura RDX
  • A Cut Above: 2019 Mazda CX-9
  • These Car Models May Soon Get the Axe
  • How to Save Money on Car Insurance
  • The Luxurious and Capable
    2019 Infiniti QX80
  • Compact Value: 2019 Kia Forte Sedan
  • Raise the Stakes: 2019 Genesis G70
  • 7 Facts About the Volkswagen Beetle
  • Fuel Types and Your Car
  • SUV Zenith: 2019 Subaru Ascent
  • SEMA Shock Yellow Chevy Camaro Dazzles
  • Keogh to Volkswagen: A Brilliant Move
  • Rogue Sport Delivers a Difference for Nissan
  • Hold Fast: VinFast Does Paris
  • After the Crash: Replace the Car Seat?
  • Volkswagen Rabbit Reprise: Again!
  • At a Glance: 2019 Kia K900
  • About the 2019 Cadillac XT4
  • Chrysler: Out With the 300,
    In With the Portal?
  • Ram Gets a Midsize Pickup Truck
  • A Whole Lot of Awesome:
    Chevrolet Colorado ZR2 Bison
February 2019
S M T W T F S
« Jan    
 12
3456789
10111213141516
17181920212223
2425262728  

Copyright © 2019 · News Pro on Genesis Framework · WordPress · Log in