Whether You Know it or Not, Now is a Pretty Good Time to Buy a Car

Would you believe it? Washington might just be right this time around!!

How is that so? The answer is simple: go out and buy a car - if you can afford it, of course, and if your credit is good!

This might seem like an oxymoron, but it really isn't. Having been in and around the car business for more years than one likes to think about and having written about them, photographed them, and even sold them, you can appreciate just how right the time is now.

This is truly a buyer's market, not a seller's market - and don't let any dealer try to make it otherwise. The reason is really simply economic, there are lots of cars sitting on dealer lots that are not moving anywhere and they are eating up lots of money just to stay there.

Dealers, like the rest of us, actually have to invest in the cars they get from the factory. Whether they were ordered and delivered yesterday, six months ago or a year ago, each car or truck that is on a dealer's lot is costing substantial money in floor planning cost (think of this as the new-car dealer's car loan to make it analogous to a new-car loan).

Most dealers paid for the iron that's on their lots with dollars that are a lot more expensive than they are today and before Washington started its bailout. And even though they were purchased with more expensive floor planning money, dealers still have to move the stock. This is to make way for the new stock that is surely coming down the pipeline right now as the 2010 model year is just about to dawn.

So, if you are in the position to buy a new car, then, by all means do so. Remember, here, though you are in the driver's seat, so to speak. Be sure you've done your comparison-shopping online and have taken a look at the price guides that are available and make sure you know what you want. Then, rather than heading out to your local dealer, send the dealer an email with the vehicle you want - if it's in stock; if it isn't he can do a little hunting and find it for you - and don't be afraid to make a reasonable offer right there in the email.

Of course, you're likely to get an email back saying that you have to come in and drive the vehicle - something you ultimately will have to do because like shoes you can't just buy a pair that look good without trying them on so to you have to eventually get to the dealership to drive the car - before they will sit down and talk price. But, stick to your guns, if a dealer is hungry enough and your offer is reasonable enough, then you will likely find yourself with an email handshake and a follow-up phone call.

Be careful when the phone rings, though, because you are likely to get a line like "I need your credit card number to make sure we can reserve the vehicle for you!" Believe it or not that could be true, if the model you want is in short supply, but, the best advice here is to tell the dealer that you would be happy to come down sometime tomorrow and look at the vehicle before you commit to a deal. You will be pressured to make the commitment on the phone, but be strong and wait; the vehicle will be very unlikely to disappear in the 10 or 12 hours between the call and your visit.

And, when you get to the dealership make sure you have any and all notes and online coupons that might be available. Remember, you are driving this deal, although the dealer would like to do otherwise, even today and if you have already set a price with the salesperson or manager, make sure the price remains the same.

In some cases, the sales manager may just say they cannot sell it for the price that you have already agreed to via email and phone. If that's the case, then pick up your paperwork or file folder and bid the dealer a good day. There are other dealers out there just as eager for your business. And, if this is even a threat to the deal, you will see people doing cartwheels to keep it from happening.

At this time, you'll do your test drive and the saleperson will do the usual patter and the next thing you will be asked for again is your credit card. Keep it in your wallet; use your checkbook if you can afford it because all you are doing is driving up your credit balance because the dealer wants the reassurance that you won't go elsewhere. If you commit a check, though, that should be a pretty good indication that you are serious. You'll also be hit with a line like "We need a minimum of $500 or $1000 down to get you to where you want to be!" If this happens, it's time to put your checkbook back and start to leave again because this isn't really the case. A deposit of $100 or $200 should be good to hold the vehicle and get a purchase and sales agreement started.

With sales as slow as they are right now, you should be able to get the options you want and save a bundle. You'll probably be able to get a GPS unit, moonroof, power windows, climate control, remote locking, leather and even upgraded wheels, if you want them, not to mention a super entertainment system.

Yes, the dealer will complain about how much it is costing him - it likely is - but there are some incentives that dealers get that will soften the blow for them, so make sure you get the best deal possible.

Don't think, though, that you will be able to get a $32,000 car for $17,500 because that just won't happen. You will likely be able to get it a substantial break because the dealer does have to move it.

By now, you have probably spent a good hour-and-a-half at the dealership and then you'll be told that the business manager will be with you in just a few minutes. Make sure that's true. You see, contrary to what you might think, that friend in the business office is every much a salesperson as the car salesman on the floor is. This person is out to sell you an extended warranty; wheel protections; and other add-ins, however, with today's warranties running to five and more years you really won't need the extended warranty so don't let that happen. One good item to get is gap insurance, the type that covers you if you lose your job. This is a must in the economy today.

If you keep to this plan, then you'll likely be driving home in a new vehicle at a price you like and at a term you can afford. The operative phrase here is: be firm, you don't have to be pushed around in a buyer's market.

Note: Forrest Stone has been an auto writer for newspapers and magazines for many years. His how-to pieces have appeared in many newspapers and on some websites and he has written for both new and antique auto publications. He is also the author of 11 auto and technical books.