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August automobile sales were the best of the year, thanks to the Cash for Clunkers boom. But the rush of customers is fading away. Total sales are running toward 10.5 million for 2009, down from 13 million last year, 16 million the year before, and 16.5 million-17+ million for the other years since 1999. Despite the clunker sales, this year is a disaster, the worst sales year in modern times.
The after-clunker hangover means deserted showrooms and hungry-for-business salespeople and dealers, especially with the government slow in getting the clunker payments back to the dealers who gave the discounts to the actual buyers.
There are all kinds of incentives; company money to the dealer that can be shared, offers to the customer, rebates, discounts, interest-rate concessions, and income tax deductions. In addition, there’s the old standby of negotiating with the dealer for some of his markup.
But there’s even more, among other things, an article in the Extra section of the September 21 Research Reports, outlines new ways to figure price-based on the invoice rather than the window sticker, and delineates the pressures on the new car market that can help bargain hunters get great deals.
But there’s also a downside to this buyer’s market. Car inventories are down. So if you decide to take advantage of the current low prices, remember that it pays to be flexible about options. It's also wise not to put exclusive emphasis on getting the best buy: A car is a $30,000 purchase that will last for years. It's important to get one you want.
This article has been adapted from a longer article in the latest issue of Research Reports, available free to AIER subscribers or $2 for non-members.
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