Why buying a car is harder in this economy.
- Dealers have less inventory, which equals less volume, which means they are under HUGE pressure to keep profits up by making more per car.
- Factories have reduced incentives because they have reduced excess inventory and eliminated poor selling models.
- The US dollar is lower in value, which means the cars made abroad: Porsche, Jaguar, Infiniti, Lexus, Acura, Audi, and some Mercedes-Benz, BMW, VW, Honda, Toyota, Nissan, Mitsubishi, and Subaru cost more to sell here, versus other countries. Canadians come to the US in droves to buy our cars and save thousands.
- Credit is very tight. The car loan auto finance banks are watching personal debt ratios and credit behavior very closely. This will mean lower credit lines, higher interest rates and more money down. Want that advertised teaser payment? You’ll need an AUTO credit score of 740, to obtain the best rates. Consider a used car lease.
- Trades are not worth what they once were. The used car market is starting to show signs of softening prices, especially in the truck and luxury market. As more new 2012 models show-up, trades become more plentiful which means lower value, as supply and demand even out. The exception to this rule is the IMPORT sedan selling for less than $10k, with under 70k miles, these cars are in high demand all the time. On the other side of the spectrum, luxury cars in limited production, availability and consistently rising new car prices keep USED PRICES on these luxury cars stable: Used Porsche Cayenne, Panamera, 911, Porsche Boxster, Cayman, Used Audi A4, Audi A6 and Lexus RX400, LX470,GX460 and SC430.
