Everyone has wanted a new car at sometime in their lives. Well the good news is they still make them and they are available. But are they worth it? I happen to be a salesperson for a Toyota store, and my answer is an affirmative yes! The car business has been in an ebb and flow since 2007 with high fuel prices and a volatile financial market the automobile business has been through a series of roller coaster events not normally part of the equation. How does this effect the normal people like us who use our cars for the daily commute as well as family haulers. Well it does.
Lets look at the economics. The auto industry was up to about 17 million in new cars sales when the decline began, now we are looking at new sales hovering around 9 million. Lets look at what that means over a 2 year period of time. We are going to have roughly 16 million cars missing from the used market in the year 2009-2010. How does this effect you. Number one, used car values are fluctuating monthly with swings as high as 20% depending on current auction values. This means that the market is more abrupt for managers to get the vehicles stock them for 60 days and turn a profit if the market drops. Currently used cars are bringing more now at this time than anytime that I can remember. New cars are still a great value for the fact that they have all the safety features and updates from the manufacturer which might be your deciding factor, lease rates are very low and financing is very competitive right now. Overall you will find some great values in used, you take a little more risk not knowing what you are getting but that is the way it is with purchasing a used vehicle. I recommend you find a good dealer that can take care of you. Don’t forget you can protect your investment with an extended service agreement (life insurance for your vehicle). These are just some thoughts, I can’t predict the future but it is my belief that dealers will have some more unrest in the used market so a new car might be the way to go. I have both right now. I bought a brand new Camry in November of 2006, and I bought a used Toyota Land Cruiser in 2006. Both have been great, one has low miles and one has higher miles both have been good all the way around.
Choose carefully, find a salesman you can trust, a dealership that will service you and you will be just fine.