A bad economy and slow sales means that it’s a buyers market in the automotive market. Dealerships are in a hurry to push old inventory to make room for the 2010’s that will start showing up any minute. Furthermore, the slumping economy means there are less customers even walking through the door, so they will be more willing to make a deal on the spot.
Let’s also look at the threat of dealerships being closed by the manufacturer themselves. Already in the news there have been reports of General Motors and Chrysler closing dealerships all over the US. Typically these are smaller volume dealers where their territory is grouped into a larger dealership organization. When these places are closed down, usually all the receive is a letter in the mail from the manufacturer, and a lot of inventory to unload before they close their doors.
This last example is a sad state of affairs that we are currently faced with. But it gives buyers a strong opportunity to go out and buy brand new GM and Chrysler vehicles for a fraction of what they would have cost even a few months ago. A dealership doesn’t want to take an even lower cost from a competing dealer buying inventory, so if they can unload on customers, they will.
If you are in the market for a new car, start making some phone calls. Also, watch the news, find out what dealerships have been notified they are closing, you might just find a deal and a reason to buy new over used.