Edmunds.com Provides Car-Buying Tips during a Slow Economy
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Edmunds.com Provides Car-Buying Tips during a Slow Economy
SANTA MONICA, Calif. — April 15, 2008 — The housing debacle, credit crunch and tumbling dollar mean many consumers have a hard time making car payments and paying for fuel. As a result, more people need to get out of their car lease early, delay buying a new car, or buy a used car instead of a new one. And with gas prices near $4 per gallon, there will be more demand (and probably fewer deals) for compact and hybrid vehicles. Edmunds.com, the premier resource for online automotive consumer information, provides helpful tips for car buyers seeking the best possible value for their dollars. The full article, Car-Buying Tips During a Slow Economy, can be found at: http://www.edmunds.com/advice/buying/articles/125357/article.html.
"There are a number of ways that consumers can make smart decisions," says Joanne Helperin, Edmunds.com's Senior Features Editor. "To start, it's important to consider and research all the factors, including interest rates, loan terms and fuel economy before finalizing a purchase."
Some other tips that can assist consumers during these economic conditions include:
Financing Your Car
- Unless you are approved for zero percent financing or have an interest rate less than prime, keep the length of the auto loan as short as possible. Figure out whether its better to take the incentive or choose the lower interest financing. Visit Edmunds' Low APR vs. Cash Back calculator at http://www.edmunds.com/apps/calc/CalculatorController.
- Don't get a longer-term loan to purchase a vehicle you cannot afford. New auto loans are being financed for up to 84 months, so many consumers owe more on their auto loans than their cars are worth.
- Unless you have good credit, increase your down payment or consider looking for a used vehicle to minimize your loan and make yourself a more attractive credit candidate.
Car Leasing
- Consider leasing, using Edmunds' Buy vs. Lease Calculator to help you make a decision. Visit the Edmunds' Buy vs. Lease Calculator at http://www.edmunds.com/calculators/.
- Short-term leases are available if you're unsure of your long-term financial situation.
Used Cars
- Consider purchasing a certified pre-owned (CPO) vehicle. CPO vehicles tend to cost about $1,500 more than a used vehicle without certification, but offer an extended warranty and peace of mind. For more information on CPO vehicles, please visit http://www.edmunds.com/certified.html.
- Compact cars and vehicles with smaller engines will use less fuel and hold their values better, so contemplate whether a four-cylinder engine will suffice.
Finding the Best Deal
- Check the latest incentives and rebates available on Edmunds' Incentives and Rebates page at http://www.edmunds.com/car-incentives/. Larger vehicles with less impressive fuel economy are not hot sellers right now, so automakers are enticing buyers with generous incentives. European automakers are taking advantage of the strong Euro, giving Americans rebates without cutting too deeply into their profit margins.
- For used cars, look at vehicles that didn't sell well. These vehicles lose their values quickly and provide a good lower-priced option.
- Consider the ownership costs of a car, not just the purchase price. Use Edmunds.com's True Cost to Own tool at http://www.edmunds.com/apps/cto/CTOintroController to research projected ownership costs.
About Edmunds (http://www.edmunds.com/about/)
Edmunds publishes four Web sites that empower, engage and educate automotive consumers, enthusiasts and insiders. Edmunds.com, the premier online resource for automotive consumer information, launched in 1995 as the first automotive information Web site. Its most popular feature, the Edmunds.com True Market Value®, is relied upon by millions of people seeking current transaction prices for new and used vehicles. Edmunds.com was named "Best Car Research Site" by Forbes ASAP, has been selected by consumers as the "Most Useful Web Site" according to every J.D. Power and Associates New Autoshopper.com Study(SM), was ranked first in the Survey of Car-Shopping Web Sites by The Wall Street Journal and was rated "#1" in Keynote's study of third-party automotive Web sites. Edmunds is headquartered in Santa Monica, California, and maintains a satellite office in suburban Detroit.
