So the economy is tanking and you find yourself in the unenviable position of needing to get a new car anyway.
Take heart. There are lots of options that can still fit within your recession-minded budget.
According to the Edmunds.com, there are 34 sedans for the 2007 and 2008 model years that are priced under $15,000. I'm including 2007 models because slow new car sales for the past 12 months means many dealers still have significant backlog of last year's models on their lots.
The 2007 Chevrolet Aveo is the least expensive of the new sedans. The Aveo, which has a look that only a penny-pincher can love, carries a base sticker price of $9,995. According to Edmunds, buyers are paying about $9,500.
The Kia Rio is also among the cheapies out there, starting at $10,770 and trading on average at $10,409, according to Edmunds.
Sedans for the budget-minded include:
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But keep one thing in mind when shopping the market's bargain basement -- these attractive base list prices can rise considerably when buyers add options to make their vehicle more usable. For example, air-conditioning is a dealer-installed option on the
Aveo, and it's possible to add other options that push the car's price well above $13,000.
Another option for budget buyers is to shop the used vehicle market.
Dealers are also stocking up on used vehicles. As more people consider buying a used car, prices on these vehicles may rise, particularly for fuel-efficient small sedans. But buyers should still be able to get a well-equipped, low-mileage car for prices comparable to less-desirable new cars.
For example, a 2006 Toyota Camry LE is estimated to have a dealer retail value of about $14,830. A similar '06 Honda Accord with the Value Package carries an estimated retail price of about $13,796.
Shoppers who peruse local newspaper classified ads or Web sites such as Craigslist and eBaymotors can usually undercut these prices when they buy from original owners, sometimes by as much as 15 percent.
For those who like to take contrarian views, now may be the best time to buy a new or used truck-based SUV, like the Ford Explorer. Prices are falling for used SUVs and lots are so full of inventory that dealers are offering large rebates and incentives.
The bottom line here is that for the foreseeable future, it is a buyer's market for smart car shoppers. Buy only as much car or truck as you need, set a target price and stick to it. Such intelligent shopping can help you do well in these tough times.
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