The Wall Street Journal reported today that car makers are increasing discountes on smaller cars. Clearly a sign of the times, since if any car is going to move off the lot, it will likely be a small, gas sipping, low cost model. People simply are not going back to the big SUV's and if the current economic problems persist, they may decide to stick with what they have or, if they are feeelong flush, snap up a decent used car at a great price - there are acres of good used cars at fire sale prices right now.
If you ask me if now is the time to invest in a new car, I would still say no. Here is why:
- If you think that dealers are discounting 2008 models now, wait until February. They'll practically pay you to take the car.
- There are a host of new models, some of them substantial improvements over the current vehicles, coming on line in 2009-2010.
- You absolutely want to avoid debt right now. If you have cash, and have to buy a car NOW, go and look at a used, low mileage model. With a warranty.
Actually, if I needed a new car right now, I would lease one for 2 years (if I could find a lease) or buy a used vehicle that will get me through until 2010. At that point, the market will be flush with new models, hopefully we will not be in a depression (!) and you will be able to choose a model substantially improved over what is available on the market today.
If you ask me if now is the time to invest in a new car, I would still say no. Here is why:
- If you think that dealers are discounting 2008 models now, wait until February. They'll practically pay you to take the car.
- There are a host of new models, some of them substantial improvements over the current vehicles, coming on line in 2009-2010.
- You absolutely want to avoid debt right now. If you have cash, and have to buy a car NOW, go and look at a used, low mileage model. With a warranty.
Actually, if I needed a new car right now, I would lease one for 2 years (if I could find a lease) or buy a used vehicle that will get me through until 2010. At that point, the market will be flush with new models, hopefully we will not be in a depression (!) and you will be able to choose a model substantially improved over what is available on the market today.
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