CLUNKERS ENDS TONIGHT 8/24/09
[caption id="attachment_1207" align="alignleft" width="300" caption="2010 MAZDA3 sedan"]
[/caption]
Dealerships will have to see what the true cost of CASH for CLUNKERS is, based on how long they are flooring the rebates form Uncle Sam. If the money takes more than 60 days to show, many dealers could be pushed to the brink of failing, as most manufacturers will NOT extend credit lines to re-stock the lots.
Meanwhile, dealers will continue to control overhead by keeping inventory to a minimum as they watch buying patterns post-CLUNKERS. The Used CAR LOT is the One dealer profit center crushed by the Clunkers program because most $5,000.00 “transportation cars” have been wiped out by the $4500-$3500 CARS trade-in rebate. Employees, students and those needing cheap rides have been pushed up to more expensive $6,000 to $10,000.00 models taking on loans that added to their debt or out of the market. Meanwhile, buyers who found themselves pushed out of the new car market for trade-in or credit reasons, quickly gobbled up the $10,000 to $15,000.00 late model, off-lease, rental, and program pre-owned cars. This situation at the low and high end of the used car market has left dealers empty, and the cash tied-up in CLUNKER rebates leaves little cash flow to buy more used car inventory.
This is a GREAT TIME for the NEW CAR BUYER willing to pounce on a early release 2010 model. By LABOR DAY, as 2010’s start to fill dealer lots and CLUNKER-summer becomes an after-thought. Owners of a nice trade-in, less than six years old and fewer than 80k miles, especially foreign name plates*; YOU will be able to enjoy a great deal on a new 2010, with reasonable incentives on interest rates: 4.99%-5.99% or rebates, along with a greater trade-in value. Dealers need nice trade-ins more than ever. Grab your best interest rate NOW as interest rates are expected to move upward by year end. BTW, forget the 0% days, they’re gone too. This is the next “GREAT TIME TO BUY a NEW CAR”, and by extension, the used car buyer will find a wider variety of makes and models along with stabilized pricing by October through the end of the year. (Credit-worthiness will still be a major factor, so expect to put 20% CASH down on any purchase if your FICO AUTO score is less than 760.) SO, get your engines REVVING and check out the latest 2010 models, they will be here soon. GRAB one before the lots start to fill-up and you could enjoy a great deal, especially if you didn’t qualify for the CLUNKERS program. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Sarah Lee is an automotive executive with 20+ years of experience. She writes about Cars, and is a staunch consumer advocate on car related subjects. Her company: MY CARLADY is a car buyer’s service committed to getting you the best deal on your next new or pre-owned vehicle. You can reach her at www.mycarlady.com Top learn more about getting your best car deal click here: CAR DEALSNEED AUTO FINANCE HELP or CREDIT report repair go to tell them MY CARLADY: Sarah Lee sent you. It’s a free consult and they do the right thing by you, fast, easy, cheap.
]]>