PRLog (Press Release) – Mar 02, 2012 –
Consumers have been wondering ‘when is it the right time’ to buy or lease that new vehicle they have been needing – or wanting? The answer is now, and here’s why…by Randy Sottile CA Lemon Law Auto Expert.
- Trade-in values: The used-car market is literally exploding. Trade-in values are at historically high levels. As much as 35% higher trade-in values for the same car as same-time a year ago. This means a bigger down-payment for the consumer on the new vehicle, and a lower monthly payment. The trade-in guides, Kelly Blue Book and The Black Book are posting record trade-in values.
Interest rates. Auto loans are historically low interest rates. What this means to the consumer is a lower monthly payment (as compared to previous years higher interest rates), yet at the same time almost all of each months payment goes to the principal, not to the interest, so the equity in the vehicle builds up quicker. Many manufacturer’s are offering ZERO percent interest car loans, or less than 2% APR.
- More Liberal Loan Qualification: Automobile manufacturers must sell cars. They are keenly aware that consumers may have less than perfect credit (FICO scores). They’re financing divisions have made a big turn-around and are looking for more basics – buyer is employed, and the buyer has paid on-time on current car loan. Now more than ever can a buyer qualify for more car – and often for a lower payment – than every before.
- Warranty: This cannot be stressed enough. Most consumers are driving cars that are out of factory warranty, or very near it. Labor rates are $100+ per hour, and someone making car payments AND car repairs just does not make economic sense. Sometimes it just isn’t financially possible. With new vehicles having “power-train” warranties running up to 100,000 miles, it only makes sense to replace a out-of-warranty car payment with a car payment that has a long warranty.
- Gas Mileage: Today’s vehicles get much better gas mileage, better performance, and now more than ever then run on ‘Regular’ (87 octane) gasoline. This combination gives consumer’s savings at the pump, and a better driving experience.
- Safety: Today’s current batch of vehicles, whether a basic sub-compact all the way to luxury vehicles costing over $100K, all share many of the same safety standards and safety equipment as standard equipment. These include 2nd. Generation airbags, seatbelt pre-tensioners, side airbags, and in many – side window airbags. Add to this that the car body itself (in a collision) is stronger than ever before, and you have the basis to purchase a safer and better car for yourself/your family.
- Factory Incentives and Rebates: Automobile manufacturers are going all-out to earn the consumers business. There are amazingly inexpensive lease deals everywhere, as well as huge rebates. The rebates are not just ‘slow sellers’, they are on virtually everything the manufacturer offers.
- Standard Bluetooth Law mandates hands-free phone use: Today’s new vehicles come standard with built-in Bluetooth, minding the law, while allowing you to keep your hands on the wheel, not on your phone. Many have voice-activated interfaces.
- Baby-Boomer Friendly Features. By the time we are 60 years old, we need 3 times the available light to see the same as an 18 year-old. Auto manufacturers have recognized this. Brighter headlights, better instrument cluster lighting, and a bevy of other ‘user-friendly’ features are incorporated to today’s generation of new vehicles.
- Price Negotiations Have Changed: In days-past, cars and trucks had a big dealer “mark-up” (the difference between the ‘invoice’ and ‘MSRP’ price. This often meant intense price negotiations between the consumer and the car dealer. Those days are over! Today’s vehicles have only 4-6% mark-up, making negotiations much easier and stress-free. No longer does a consumer have to worry that they might have paid thousands too much. Add to this the plethora of internet pricing information, internet sales departments at dealerships, and fleet sales buying programs, and you have a buying atmosphere without the fear of spending too much time negotiating, and the dealer making too much profit on the sale. YOU ‘are in the driver’s seat’ in price negotiations.
- Lower Maintenance Costs/Free Maintenance: Today’s new cars require much less in the way of scheduled routine maintenance than compared with vehicles just 3 or 4 years ago. Oil changes are typically every 10,000 miles, no tune-ups required, and transmissions are mostly “filled for life” requiring no periodic maintenance. Many automobile manufacturers now provide all normally scheduled maintenance during the new vehicle limited warranty period for free. These include, but are not limited to BMW, Cadillac, Volkswagen, and others. Visiting the manufacturer’s website will provide you with the latest updated information regarding these cost-saving dynamics afforded to the new car buyer/lessee on many popular makes of vehicles.
Lets’ face it, for most consumers a car is a car payment, and it’s transportation. Buying or leasing a new vehicle with the financial dynamics that are in place will yield the consumer a better car, a safer car, a car with a factory warranty, and most importantly the likeliness of the same, or even a lower monthly payment.
Is there any time better than now to purchase or lease a new car? The answer is simple – start shopping!
Randy Sottile is a noted auto expert and has been featured on television, internet and radio. HitmanPR is a marketing agency that uses professionally produced video, social media management, print and mainstream media to build buzz around a person, service or persona. Find out more California Lemon Law answers online here.