One of the recession’s consequences: a buyer’s market. Is it time to consider a used car trade in? Is it time to buy new, now that some things have better value?
Have you ever had someone cajole you into doing a trade in for your vehicle? This has been the situation for me lately.
I Was Offered A Great Deal
The dealership where I bought my truck 2 years ago keeps sending me offers to buy back my vehicle at the original MSRP minus $0.10 to $0.55 per mile, depending on the wear and tear. Since I only have 15,000 miles in 2 years, I figured the discounted amount as approximately $3,000, which represents a very good deal for me. The only condition is that I must buy a new or used car from the dealership.

Photo by FayettevilleAveo.com
Would You Buy In This Buyer’s Market?
The letter they sent me insists that they already have clients anxious to buy my used truck (pick-up), a claim that I find suspicious indeed in these trying times. So why are they pushing me to trade in my car? Because hardly anybody is buying new cars or because lots of people are looking for good used vehicles? Maybe both. In any case, if they don’t come up with some shenanigan at the last minute, I stand to make an excellent deal. So, is it time to buy a new car? Or a new house for that matter, given the many opportunities available?
Here’s an argument for being a “buyer” at this time: the pressure is on the Detroit automakers to start making money, especially after they receive any form of bailout from the government. With credit already showing signs of being loosened, this could only bode well for us consumers, maybe creating an atmosphere that’s conducive to buying autos… an atmosphere that encourages you and me to start parting with our cash to help nudge this economy along towards recovery.
Even the foreign brands will feel the pressure if clients flock to GM, Ford and Chrysler (by the way, I would never again buy a Chrysler car, no matter what the deal may be; they have shown time and again that they can’t make quality cars, even when Mercedes-Benz took over), and will thus cause the markets to continue to shift in favor of consumers. So the question remains: should you buy a car or house given the present conditions of the market (ultra-favorable to buyers)? Well my answer is: it depends.













