There has never been a better time to buy a new car.
Last year turned out to be quite a miserable year in terms of new cars sales, but since Christmas 2009, sales have steadily bounced back from near-record lows. As if the rebounding automotive market didn’t already create a unique buyer’s market for new cars, there are now a handful of factors that should make a new car purchase even more attractive for consumers. Three main factors that should make buying a new car even easier in 2010 include increased vehicle financing, improved vehicle quality and design, the closure of Saturn and Pontiac by General Motors and, of course, the Toyota recall fiasco.
Without bank financing, buying new cars is almost impossible as the average transaction price of a new car in 2009 was a little more than $28,000. Now that financial woes are starting to let up for most banking institutions, their practice of consumer lending for automobiles should also rebound. While zero percent financing and zero down on a new car may be a thing of the past, expect most banks and dealerships to offer very alluring finance rates for new car loans. After months of difficult financing, dealers should be willing to negotiate prices and interest rates just to get people coming in the door again.
Automakers that were once viewed as inferior are coming out with new models and are aggressively looking to attract new buyers. Vehicles such as the 2010 Buick LaCrosse and 2010 Hyundai Genesis Coupe have caught the attention of new car buyers and the automakers and dealerships are welcoming these mew customers with open arms. Other automakers are even breaking into new markets in an attempt to broaden their market share, and the all-new Suzuki Kizashi is a great example of this. With all of the new models that are coming out and the increased brand and quality awareness, dealers will be more likely to deal when it comes to new shoppers or return owners.
Toyota’s bevy of recalls to start the year could play a major role in the automotive industry this year. Honda, Chevrolet and Ford all look to make the most gains as potential Toyota Camry, Toyota Corolla and Toyota Tundra shoppers now give cars like the Honda Accord, Chevrolet Cobalt and Ford F-150 more of a look. Competing automakers have already offered incentives to current Toyota owners that switch brands, but once the recall is performed on all new vehicles, Toyota will surely come back with enticing incentives to retain loyal Toyota buyers. Whether returning to a Toyota dealership or switching to a competing brand, this hot topic is sure to push the negotiations in the customer’s favor.
Customers and fans of Pontiac and Saturn may feel a little betrayed by the announced closing of both brands, but GM’s remaining brands will be more than happy to deal on a new vehicle to keep future sales in the GM family. As a pair, Pontiac and Saturn focused on small, sporty and fuel-efficient cars and crossovers, and automakers such as Ford and Hyundai might be looking to deal to capture the orphan customers. Both GM and its competitors will be fighting hard to satisfy customers of abandoned brands, so return owners should check for incentives from GM dealers while competing dealers will likely be putting up some sort of deals for these customers as well.
Regardless of whether it is for internal or external factors, automakers and new car dealers will be fighting hard to attract customers in 2010 to keep existing customers and attract new ones. In the end, these main factors should make buying a new car easy again by making dealerships and automakers compete against one another for business.
