By on August 27, 2007

dually_event_2.jpgIf 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."

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15 Comments on “WSJ to new Car Buyers: Wait...”

  • avatar

    True, but now is an exceedingly good time to buy a vehicle, imho. Today you can get a 265hp Camry, an awd vehicle for ~$25K, a 35mpg econobox that actually has style/fit/finish and reliability for $15K, $5K off a full sized pickup, etc. Quality is way up at most manufacturers and these vehicles generally will last well beyond 150K miles. Plus financing offers are still available at around 0%. Add to that the entry luxury performance wars bringing us a twin turbo bimmer/v8 M3, Nissan G37, Audi S4/RS4, Lexus IS 350, etc, etc. and its getting hard to hold onto my car.

  • avatar

    The only vehicle I would consider buying right now is that Ram with the giant cowboy hat.

  • avatar

    True guyincognito, but one could also not buy a new car if one didn’t need to right now and wait a few years untill you had to repace your curent car and the available models on the market will be even better and quality will be even higher.

  • avatar

    guyincognito, are you sure you can get an AWD Camry? I guess I thought they were only front wheel … hey that dog has a puffy tail!

  • avatar

    I think uncertainy rules today everywhere in all consumer goods.In my world as a GM employee we have been holding back car buying cause of uncertainy.Guys that used to buy new, are buying used,and only when they have to.
    In the next couple of years I see this trend,or mind set spreading to all sorts of folks in all walks of life.
    Lets face it whats your priority?A new car or keeping your house?
    Everybody including domestics are building more reliable cars.To the savvy buyer theres thousands of good used cars/suv’s/trucks out there.
    Even here in Ontario 10 or 12k will buy you 4-5 yrs of good cheap driving.
    Yes I think all of the new car sellers are in for a rough ride.

  • avatar

    Wait how long? A few months? A year?

  • avatar

    nonce – wait until your stocks bottom out and you can take the money out you had allocated for a new Lexus to now buy a discounted Scion…

  • avatar

    Buy what you NEED and not what you need to impress the neighbor. Don’t overspend and your risks are lower should the economy slow down. And never buy a car in fall the deals are always better after the new year.

  • avatar

    I second the point made by Redbarchetta, but would amend “should the economy slow down” to “when the economy slows down.”

  • avatar

    I can’t bring myself to purchase a car without special financing.
    I am addicted to special APR!!!

  • avatar

    Derek: I didn’t want to sound like a pessimist so I censored myself. I agree the bottom is going to drop out soon.

  • avatar
    Steven Lang

    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).

  • avatar

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

  • avatar

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

  • avatar
    Steven Lang

    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.

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