Cars - How to Buy a New Car in a Recession

How to Buy a New Car in a Recession

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You can get a great deal on a new car in a recession.

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If you are in the market for a new car, a recession is the best time to buy. Dealerships will offer deep discounts on current model vehicles and last year's vehicles. Some of the best offers are from the previous year. Many of the cars from the previous year remain unsold and have never been driven. Dealerships will fight for your business by offering you incentives. According to the New Cars website, you can use the rebates and incentives to afford that luxury or hybrid car.

Difficulty: Easy

 

Instructions

1. Check your credit score. Arm yourself with the knowledge you need to get the best interest rate possible. Once you get your credit score check some of the online credit sites to see what you qualify for. If you don't understand what you qualify for you will be at the mercy of the dealership finance department. Prepare before you go so you can negotiate a much better deal.
   
   
2. Investigate dealership incentives. Every dealership is different. Pick three car models you are interested in and call the dealership. Ask them to explain the incentives and take notes. Once you decide on your new car, make sure you get all the incentives offered by the dealership.
   
   
3. Set a budget and stick to it. Have a monthly payment in your mind you can afford. Keep your car loan terms less than four years. Your new car will depreciate as soon as you drive off the lot. Extending payments with their creative financing will have you upside-down in the loan if you are not careful. Upside-down means you owe more than it is worth.
   
   
4. Set boundaries when you enter the car dealership. Sales people will be ready to sell you their top of the line car when you have a bargain basement budget. Listen to the pitch but make sure once they finish you instruct them to point you toward the new car in your price range. Taking control of your buying experience will give you confidence and control of the money you are spending.
   
   
5. Visit three car dealerships before you make a decision. You want to make sure you are confident about your buying decision. You will also be offered extras you don't need. According to "Consumer Reports," don't accept unnecessary services and fees.