CarSeekBlog

With many major automakers declaring bankruptcy, thousands of car dealers closing their doors, and some brands ceasing production entirely, it can safely be said that, from the auto industry’s perspective, 2009 was a horrible year to sell cars. In fact, by the end of the year only about 10.4 million new cars had been sold – the lowest tally since 1982.

On the other hand, because those hurting automakers were offering deep discounts in order to get cars off dealership lots, and because most dealers were willing to negotiate with the few car shoppers they did have, rather than let anyone walk away without a deal, 2009 was a fabulous year to buy a car.

So what does that mean for 2010? Well, for one thing, you can forget about those 0 percent financing car loans. Analysts are expecting to see a gradual increase in the number of cars being sold, and the prices of those cars, as the market slowly recovers. As that happens, automakers and dealerships will most likely pull back on the heavy incentives they previously used to hook buyers in an unstable market.

Equally relevant, however, is the state of the available inventory. As reported in U.S. News Rankings and Reviews Most dealers overbuilt 2009 models, then wound up having to sell cars at a discount in order to get rid of an oversupply. Production was scaled back for 2010 models, and car prices traditionally go up in January; conditions are ripe for an increase this year.

Nevertheless, there may still be bargains to be found. True, the discounts are smaller, but some dealers are still being fairly aggressive, though it’s generally one or two cars being less expensive than their competition, rather than industry-wide discounts. Also remember that there are fewer than 1,700 Pontiac and Saturn models left in the country, and since those brands are no longer in production, dealers aren’t worried about sales numbers.

Finally, remember that the best bargains are those that aren’t advertised. Ask about last year’s models, or paying cash. You may be pleasantly surprised.

Filed under: Buying Trends, Cash or Credit, Economy by Mel