5 reasons to buy a new car in 2009
My current car leaves a lot to be desired. A 2002 Chevy Blazer with 97,000 miles and front windows that no longer go down, it also has a possessed ”Check Engine” light that turns on randomly.
On the other hand, it’s given me very little maintenance trouble in said 96,000 miles, saved me from more than a few late-night binges at Jack in the Box (you try and order drive-thru without rolling down your window) and the “Check Engine” light always goes off after a few days.
Even so, I know the day is fast approaching when I will need to buy a new car. While personal finance logic tells me I should wait and save as long as possible, the current economy is doing its best to convince me to do this sooner rather than later.
Here are 5 reasons why 2009 is shaping up to be a great year for a new* car purchase:
1. Decreasing Prices: Weak sales and robust competition are forcing dealers to make deals they wouldn’t have even considered a few years ago. According to the Comerica Auto Affordability Index, the last time cars were this affordable was 1979, nearly 30 years ago!
2. Increased Incentives: Cash back, low or zero-interest financing and creative promotions – such as Chrysler’s three-year $2.99 per gallon gas guarantee and one dealership’s buy one, get one free truck deal - are just a few of the incentives being offered to tempt hesitant buyers.
3. 2009 Tax Break: At least there’s one silver lining to the massive $700 billion bailout: as part of the bill, Congress has reinstated in 2009 an expired tax break that gives taxpayers the option of deducting either state income tax or sales tax paid during the year. If you’re lucky enough to live in a state with low or even no income tax (like me!), this provision can save you big bucks come April 15.
4. More Inventory: Want a teal green Toyota with tan trim, leather seats, a sunroof and 4-wheel drive? With sales stalled, dealerships are sitting on more inventory than usual meaning your dream car may be available off the lot – a less expensive option than customizing it from scratch.
5. Better Treatment: It’s a buyer’s market out there, so like real estate agents, car dealers are learning there’s more to sales than price and product. Sure, savvy buyers are going to concentrate on these two factors above all, but they’ll enjoy bottles of chilled water, complimentary snacks and other extras while they’re doing it.
Living in Texas, the 2009 tax break is probably one of the bigger factors for me in deciding to purchase a car, so you can be sure I’ll be keeping an eye out to see if this provision is extended to 2010.
*In my case, by “new” I mean a gently-used car from 2007 or 2008 with low mileage. Even all of the above pros don’t make up for the immediate depreciation of a new car once it’s driven off the lot.
Filed under Economy | Comment (0)Saver in the City’s five for Friday
Squakfox blogs about 6 bad words you shouldn’t use on your resume. No, they’re not what you’re thinking although those are probably not a good idea either. And if I need to tell you that you deserve to be unemployed.
Low 30-year mortgage interest rates and falling home prices tempting you to explore the exciting world of home ownership? Be sure to read Sound Money Matter’s post on how to find and hire a real estate agent before you make the leap.
Cents to Save offers some great common sense – er, cents – tips for shopping at thrift stores. Sure, it’s not Halloween (when my annual visit usually falls) but desperate times call for smart measures.
Gather Little by Little and The Frugal Dutchess tell you how to be less trashy…at least when it comes to coffee filters and paper towel tubes.
And just because it’s Friday and slated to be 82 degrees today (sorry, at least where I live), I’ll end this post on a ray of sunshine. Over at Million Dollar Journey, Frugal Trader gives us 6 reasons why recessions are a good thing.
Filed under Career, Economy, Finances, Personal, Saving Ideas, Shopping | Comment (1)Dear future self…
I saw this on the bulletin board at Bogleheads.org and found it interesting:
Dear Future Self -
This is your Past Self. It’s January 21, 2009 and we’ve just completed one of the worst years ever in the market. The S&P 500 was down 37% in 2008 and the pain was pretty bad. 2009 has not provided much relief so far. Every day, the headlines roar with news about bankruptcies, layoffs, decimated earnings, and ponzi schemes. Things are looking pretty gloomy right now.
The reason I am writing you this note is because I am afraid that you’ll forget this pain at the next market highs. I don’t want you to get caught up in the euphoria again. I want to remind you to not be so greedy next time. I want you to be sure to take something off the table. I want you to follow your asset allocation and when your stock percentage exceeds your target, I want you to sell. It’s not a sin to sell, it’s not a bad thing to pay taxes – but it is a bad thing to lose your big gains. Remember the pain and don’t let it happen again.
Good luck -
Your Past Self*
What do you think? Will we forget this in 10-15 years when we’re in another Bull market (Note to investors: I don’t have a crystal ball so believe my prediction at your own risk) or will it make enough of an impact to affect Americans’ entire philosophy on saving and investing?
I personally remember my grandma – who grew up during the depression – serving leftovers for days in a row, sewing clothes for me and nonchalantly stuffing a napkin-wrapped roll from the local buffet into her purse for later.
I was mortified and annoyed as a teenager, but the part that stands out now is my mom explaining that my grandma was a child of the depression and how that impacted her attitude toward money.
I know my actions now reflect my uncertainty of how bad the economy could get, but what happens when time dulls the unpleasantness of these years? Do you think today’s economy will change how you look at money, saving, investing, etc.?
*posted by “Gekko” at Bogleheads.org
Filed under Economy, Finances | Comment (0)Saver in the City’s five for Friday
As the clock slooowwwly ticks toward the weekend, here’s a round-up of the articles that caught my eye or taught me something new this week. Because really, who works on Friday?
Jim at Blueprint for Financial Prosperity reminds us what to do if you’re ever in a car accident. Seriously, write this stuff down and keep it in your glove box…
In the “I learned something new this week” category, apparently human flesh can freeze in 10 minutes when temps hit -40 degrees. So, in case you’re in one of the areas affected by this week’s arctic freeze, prevent yourself from becoming a human popsicle with Ashley’s easy (and cheap!) recipe for Baked Potato Soup at Wide Open Wallet.
Hmm, after reading Fabulously Broke in the City’s ideas for things to do when you’re stuck inside, I’m actually excited about all the cold weather headed to Texas.
In these rocky economy times, building an emergency fund has never been more important, or more daunting. Simply Saving makes it look, well, simple, with her post about 21 ways to create an Emergency Fund.
Finally, unless you’ve been living under a rock, you’ve heard 2009 could be the year buying a new car trumps buying used. Deep discounts, incentives and lower financing options abound, but before you buy be sure to read Negotiation Training Info’s tips on buying a new car.
Doom and gloom on a Sunday afternoon
Usually on Sundays, I love sleeping in and then making my way to the local Starbucks where I slowly flip through the newspaper and clip coupons. Today, though, I couldn’t help but notice the gloom and doom attitude that permeated the paper:
Exhibit A, from the lead paragraph in a Business section story:
“No, 2008 wasn’t just a bad year. It was an awful year. A Johnstown Flood kind of year. The kind that wipes out proud century-old institutions, decimates entire industries, and leaves everyone decidedly poorer and the world profoundly shaken.”
Jeez, now I’m shaken. Next I turned to a finance column where I found the cheerful lead below:
“By now, having watched your house fall in value, your 401(k) plan slide toward nothingness, your job security disappear, your benefits fade, the complete failure of business management, the disastrous failure of regulatory control, the finger-pointing of the political parties, the shameful desire of a state governor to sell a U.S. Senate seat and the revelation of an epic $50 billion fraud, none of us could be blamed if we wanted to move to Montana and shun the company of human beings.”
Excuse me while I go slit my wrists. Seriously, as if we aren’t beseiged enough already with negative messages about the failing economy, now we have to read all about it in the Sunday edition of the paper – usually an escape from reality with its lifestyle stories and colorful circulars touting the latest sales.
Luckily I didn’t stop reading there because my mood improved considerably after turning to the Travel section where another expert confirmed 2009 might be the best opportunity for inexpensive travel in years.
Five different coupon inserts (with stuff I actually use) also helped brighten my mood, along with a story in Parade about the men and women of the U.S. Secret Service who are willing to sacrific their lives for the President. Okay, maybe not exactly the most upbeat story but it was interesting all the same.
Anyway, note to the media: you’re not helping the situation any with all this doom and gloom. I’m not one to bury my head in the sand but if I wanted to be depressed I’d simply open up my latest 401(k) statement.
Filed under Economy | Comment (1)