WSJ to New Car Buyers: Wait

Frank Williams
by Frank Williams

If you're trying to decide whether or not to buy a new car, the Wall Street Journal has a bit of advice: wait. Citing experts from Consumer Reports and Edumunds, they're projecting increased incentives as sales continue to drop and the model year winds down. They also note that some of the 2008 models are being introduced with incentives already attached, which is good for you, bad for their makers. If that bit of advice isn't enough to send the beancounters at The Big 2.8 and Toyondissan running for the Excedrin, their conclusion surely will: "Then again, given the prognosis for the housing market and its effect on consumer budgets, it might simply be wiser to wait. If you've had your car for five years or less, chances are it still has many healthy miles ahead."

Frank Williams
Frank Williams

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  • Steven Lang Steven Lang on Aug 27, 2007

    The lowest returns in the remarketing industry usually take place in October and the first two weeks of November. During that period you really have very little money out there. No bonuses, no tax returns, and no holidays designed to boost spending. The overcapacity in late model vehicles (2005 and newer) is simply astounding right now. Ijust saw my first 2005 Town & Country go for less than $5000 today ($4600). Now granted it wasn't a gussied up one. No stow n' go, no leather, and it had about 98k on the 3.8L. But still, that's over 80% depreciation on a vehicle that still has about 50% to 65% of it's left. A year ago this price range would be normal for a four year old model. Now it's reaching the same models that are only two years old. With a lifetime warranty thrown into the mix, it may be time to consider a Chrysler minivan come October. Then again... I only buy vehicles that will make me a profit. Everything else is a waste of time (and money).

  • Samir Syed Samir Syed on Aug 27, 2007

    I think end of the month is a good time to go. Gotta make the quota, nothing like a deadline.

  • Htn Htn on Aug 28, 2007

    End of the month = good End of the quarter = better End of the year = best

  • Steven Lang Steven Lang on Aug 28, 2007

    No, actrually end of year is a strong time for dealers due to all hte so-called 'contrarian thinking' in the market. The best time to buy is usually October and the first two to three weeks of November. Until tax returns, bonuses, and 'shopping' holidays change the money flow THAT will be the period of time where sales are usually the slowest.