Edmunds.com Offers Do's and Don'ts on Coping with Rising Car Prices This Summer
SANTA MONICA, Calif. — May 10, 2011 — With lower incentives and higher prices expected in the automotive market this summer, Edmunds.com is issuing an updated advisory for consumers thinking of buying a new car within the next few months.
"Production issues in Japan have already triggered price increases and incentive reductions across the board for all makes, both foreign and domestic," said Edmunds.com CEO Jeremy Anwyl. "The average price of a new Honda Civic, for example, has gone up more than $1,600 since March. Prices are expected to climb even more this summer, creating a challenging environment for consumers in need of a new car."
To help car buyers navigate the summer shopping season, Edmunds.com offers the following do's and don'ts:
- Do wait until the fall or winter to make your new car purchase. If you don't need a new car right now, the smartest play is to wait until later this year and re-evaluate the market when production is back to normal.
- Do extend your car lease past the summer. Some drivers with leases scheduled to expire this summer may think they have no other choice but to get a new car. However, they can ask the lessor about extending the current lease (using the 800 number on the monthly statement).
- Do consider finishing up someone else's lease. Sometimes a person needs to get out of a lease early; LeaseTrader.com is one company that specializes in matching those consumers with car-shoppers who are interested in a short-term lease. LeaseTrader.com estimates that of the leases currently available for compacts and midsize sedans, about six percent have less than 12 months left on their lease, and many are offered with a cash incentive of more than $1,000. Taking over such a lease could bridge the gap for a new car shopper until the inventory of new cars is restored.
- Do shop around and negotiate. Patient shoppers who look hard enough will still be able to find the deals this summer, but they will have to be flexible about the exact make and model, as well as color and options. Throughout the summer, Edmunds.com will be providing weekly updates for consumers on vehicles with the best deals at http://www.edmunds.com/deals-of-the-week.html. Edmunds.com also offers tips to successfully bargain with dealers in its advice article "Negotiating 101" at http://www.edmunds.com/car-buying/negotiating-101.html.
- Don't assume used cars are a better deal. Edmunds.com's research indicates that buying a used car won't provide salvation from inflated prices. Today's used car prices are significantly higher than in the past. A record number of models have earned a place on Edmunds.com's list of one-year old used cars that are essentially as expensive as new cars at http://www.edmunds.com/car-news/new-vs-used-car-buying.html.
For more insight into the summer car market — and how it will affect consumers — please visit Edmunds.com at http://www.edmunds.com/car-buying/a-high-priced-low-choice-summer-for-car-shoppers.html.
About Edmunds.com, Inc. (http://www.edmunds.com/help/about/index.html)
Edmunds.com Inc. publishes Web sites that empower, engage and educate automotive consumers, enthusiasts and insiders. Edmunds.com, the premier online resource for automotive information, launched in 1995 as the first automotive information Web site and hosts the most established automotive community online. Its mobile site, accessible from any smartphone at www.edmunds.com, makes car pricing and other research tools available for car shoppers at dealerships and otherwise on the go. InsideLine.com is the most-read automotive enthusiast Web site. Its mobile site, accessible from any smartphone at www.insideline.com, features the wireless Web's highest quality car photos and videos. AutoObserver.com provides insightful automotive industry commentary and analysis. Edmunds.com Inc. is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit. Follow Edmunds.com on Twitter@edmunds and fan Edmunds.com on Facebook at http://www.facebook.com/edmunds.