Right Time to Buy a Car?

As dealerships are preparing for their "summer deals" many potential car buyers are asking themselves if this is a safe time to buy. With the economy still sluggish and gas prices creeping up, what is happening in the car market? Traditionally, many consumers will wait until the big July 4th sales offered at many dealerships. Unfortunately, as of now auto prices are up and incentives are down.

Incentives
One of the biggest savings available to car buyers are the incentives manufacturers offer. Dealerships often give rebates and cash back upon buying a vehicle. These are historically a couple thousand dollars. Yet, in comparison to previous years, 2011 incentive offers to date have been relatively low. Although some dealerships do offer zero percent financing to help with down payments.

High Prices
Over the summer prices for sedans and more miles per gallon vehicles will most likely not lower in prices. Cars such as these are in higher demand over the summer because of the increased gas prices. Also because of the earthquakes in Japan, fewer Japanese cars and cars that use parts from Japan are on the market. These will also most likely not lower in price. A recent report by Edmunds said that the average vehicle transaction price has increased about $1,000 in the last year.

Potential buyers will need to research cars and dealership sales extensively before deciding to buy this year. As Independence Day gets closer on the calendar, we can only hope that prices on cars will go smaller.