Consumers to Buy A New Car for Decent Credit Now

Buying conditions that favor consumers are not uncommon in an economic downturn.

Savings can be found on impulse buys and small-ticket items, and the more one spends, the better the savings become. That leads many to believe this is one of the best times ever to buy or finance a new car.

Stuart Lasser, president of Subaru Kia of Mount Olive, as well as three other dealerships, believes things are working both in favor of — and against — the consumer.

"You still need to have decent credit to be able to finance," Lasser said. "It's marginally better than it was two or three months ago, and easier than it was three or four months ago, but not as easy as it was a year or two ago."

Finding the right car at the right time is still the most important priority for any consumer, but it might make sense to shorten the time period a bit. If one had not planned on purchasing a new car until the end of this year, now may be the time to begin shopping around.

"There are some very low-rate programs from the manufacturers," Lasser said. "If you have decent credit right now, you can make a good deal for yourself.

"If your credit is really shaky right now but your car is running OK — keep driving it," Lasser said. "If you've been thinking about a new car and you have good credit, now is the time to look for one."

Prices are being cut, and direct rebates from manufacturers and dealerships are being offered. But the best way to cash in might be through financing. A good credit score now will make financing a new car cheaper than almost any other time.

"What's happened is the auto industry has slowed production," said David Ayers, president of Ayers Chevrolet. "They're heavily incentivizing cars to move along the line of production," he said of the various programs to attract buyers.

Ayers agrees that credit is still the number one thing to have in order before attempting to buy or finance a new car.

"A much higher standard is put on the credit score than there was a year ago," Ayers said. "It's important to have verifiable credit because a loan at a reasonable rate is hard to find."

The highest rebates are attached with the most expensive cars. The make and model does not affect the rebate as much as the price tag does.

Ayers sees it as a good time to get maximum value for a trade-in.

"Rental companies are holding onto cars longer because leasing is not as attractive as it once was," Ayers said. "The availability of fresh used vehicles is smaller than it once was. This has pushed the market for used cars up. A car today would have a higher trade-in value than a car in the same condition would a year ago."

"If you have a car you would feel comfortable selling to a relative or friend, now is the time to trade it in," Lasser said.

Not many dealerships are reverting to gimmicks or come-ons in an attempt to get people to purchase from them. Having an honest relationship, with decent rates and payments on time is all either side seems to be looking for right now.

"We've never been a dealership that has sold a lot of back-end products," Lasser said. "We don't put extras on the car unless people want them. Sometimes we sell extended warranties. We're just selling cars — not doing anything extraordinary."