For buyers
venturing into dealer showrooms
looking at 2007 models, the
same rules for smart shopping
apply now more than ever. Before
setting foot in a dealership,
check out Bankrate's
5 must do's for auto shoppers.
In addition, consider these points:
•
When faced with the choice between a cash rebate and cut-rate or zero-percent financing, it's almost always better to take the cash and apply it to the down payment.
•
If
you're in the market
for a new vehicle,
this could be a good
year. With the industry
coming off a year
when sales dropped
by up to 1.5 million
vehicles, showrooms
will overflow with
new and redesigned
models and dealers
will be in stiff competition
to boost sales. That
means they'll be cutting
prices and offering
incentives on all
but the most popular
models.
•
Sometimes
it's wise to be a
contrarian and so
this may be a good
year to buy a truck
or sport utility vehicle.
As a result of record-high
gas prices last year,
demand for gas guzzlers
dropped precipitously.
Now, with gas prices
headed down toward
the $2 mark, the savings
on a purchase may
outweigh the savings
on fuel -- particularly
if you don't drive
many miles.
•
Speaking
of miles driven, be
careful if you choose
to lease your new
vehicle. Most of the
attractive lease offers
you may see in advertising
are based on driving
12,000 miles per year
-- some offer only
10,000 miles. But
the average U.S. driver
puts more than 15,000
miles a year on a
car. If you are an
average driver, you
could wind up paying
thousands of dollars
in mileage penalties.
•
Keep a close eye on the option list. The extra goodies can substantially drive up the price and return little or no extra money at trade-in time.
•
If you do decide to take the plunge in 2007, don't fret about buying a vehicle that's new to the market or has been substantially redesigned. Thanks to computer-aided design and modern computer assembly, the gremlins that once plagued new models have been largely eliminated.
•
Keep a close watch on the happenings in Washington and Detroit. Changes in Federal Reserve monetary policy could change the financing deals. If car and truck sales fall, manufacturers may soon follow with price cuts and incentives.
•
Avoid buying more vehicle than you need or can afford, and keep the financing terms as short as possible.
