Next 30 Days are Best Time of Year to Buy Car, Reports Edmunds.com
SANTA MONICA, Calif. — August 24, 2010 — Edmunds.com, the premier online resource for automotive information, today announced that according to its latest update of True Market Value® (TMV®) Predicted Price Trends at http://www.edmunds.com/tmv/alerts.html, more than 90 percent of new cars are expected become less expensive (or to sell at their current relatively low prices) in the next 30 days.
"The next 30 days will be the best time of this year to get a great deal on a car, as there is still sufficient selection of old model year bargains and prices are generally trending downward," stated Edmunds.com Senior Analyst Jessica Caldwell.
Edmunds.com estimates that just under 80 percent of new cars and trucks sold today are 2010 model year vehicles, but that dated inventory is declining quickly as dealerships are seeing more traffic from bargain-hunters who have been anxiously waiting for year-end sales. Today's shopper are finding particularly low prices on the 2010 Chevrolet Silverado, Ford F-series and other models that have been updated for 2011.
Based on seasonal trends, Edmunds.com analysts anticipate that within the next 30 days, automakers may boost incentives for:
- Large SUVs such as the Chevrolet Suburban, the Ford Expedition, and the Nissan Armada
- Large vans including Chevrolet's Express line and Ford E-Series wagon line.
- Premium luxury cars such as the 2010 BMW 7 Series, 2010 Audi A8, 2010 Mercedes Benz S-Class and 2010 Volvo S80.
"No dealer wants 2010 model year inventory on their lots in 2011, but that is especially true for the premium luxury segment whose shoppers tend to be among the most image-conscious. These vehicles are largely languishing on dealers' lots right now, and as we get closer to year-end it will become easier to make a deal on one," noted Analyst Richard Arca. "We also expect dealers to be increasingly flexible when negotiating prices for last year's hybrid vehicles like the 2010 Ford Fusion Hybrid, 2010 Honda Insight, 2010 Mercury Milan Hybrid and 2010 Toyota Camry Hybrid. Gas prices aren't high enough to motivate shoppers to consider them, especially when incentives are fairly generous on some of their non-hybrid counterparts. Dealers are ready to clear out the old inventory and may make some compelling deals, especially as some new competitors are entering the market."
On the flip side, consumers will pay a premium to buy newly redesigned models such as the 2011 BMW 5-Series, 2011 Ford Fiesta, 2011 Infiniti QX56 and 2011 Jeep Grand Cherokee. However, given the economy, a few months after they become available, it is likely their prices will fall too.
About Edmunds.com, Inc. (http://www.edmunds.com/about/)
Edmunds.com Inc. publishes four 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. 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. CarSpace is the most established automotive social networking Web site. 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.