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How Desperate are Auto Makers to Sell Cars?

[Dec 5, 2008.]

 

The headlines are unavoidable, the financial numbers are enormous in scope and sales of new cars are down dramatically from a year ago.

It’s not a big secret, the auto makers are getting desperate and that could spell opportunity for you.

According to Edmunds.com there are a variety of incentive programs available for most makes and models.  These incentives can be cash rebates, low interest auto loans, special lease programs or marketing support.

Cash rebates will provide the consumer to reduce the purchase price directly.  A direct reduction in down payment is typically how a new car buyer would use this cash rebate.

Low interest auto loans are pretty straight-forward, the auto manufacturer subsidizes the interest rate to lower the payment making the car more affordable.  This is commonly used in conjunction with cash rebates to help new car buyers achieve their personal car payment goal.

Special leases is worth a mention but in times of such credit uncertainty, we are seeing fewer and fewer lease programs available to new car buyers.

Marketing support is a program provided to franchised dealers in the form of cash to the actual dealership instead of the buyer.  This money can be used in many different ways but is intended to market new buyers.  If the cash is available on the make and model you choose you could have some additional negotiating power you didn’t even know about.  You can find this information and more at Edmunds.com

Outside of incentives you are now seeing dealerships listing cars at deep discounts.  Although not all models and makes are seeing these discounts but any vehicle with low gas mileage can be seen with a slashed sticker price.  With 2009 right around the corner and a slow 2008 coming to an end, inventory is high, prices are low so buyers are taking  advantage if they can qualify for an auto loan.

 

About Author:

Brent Lane is a Mortgage Consultant in Roseville, California. He helps homeowners in California with their mortgage financing and writes on his BLOG at www.thelanegroup.blogspot.com

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