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.
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