Want to stimulate the economy, in six easy steps, all by your li’l ol’ lonesome? Now is the time to buy a new car.
Think about it. GM and Chrysler are flush with free money, and have brought back their Free Money to Most Anyone With a Pulse financing plans. Ford will have to follow suit. So you know the Japanese will play ball, and (shh, don’t tell anyone) so will the Germans. (The Koreans are already playing, and have been since the late ’80s.)
Lock in a fixed rate, and stretch that baby out for years. Usually, I recommend putting down no less than 20% on a new car, and getting the shortest terms you can find. But not these days.
For the first year or two, you might regret buying now, as you watch prices come down and interest rates stay low. But we’re in a window of opportunity here, and there’s no telling how long it might last. Here’s what I mean:
1. Bailout money is letting the carmakers make stupid loans again.
2. Desperation has prices low.
3. Sometime in the next 18-24 months, inflation is going to kick in.
4. I mean, bigtime.
5. That fixed rate at 6.1% or whatever is going to look awfully sweet when inflation has jacked up new loans up over ten percent.
6. You’re going to feel awfully good paying back that loan with dollars worth a third less than the ones you borrowed.
And that’s the Six Point VodkaPundit Plan for stimulating the economy. Fahrfugnugen.
From your lips to God’s ears.
Please, people, go buy a car and have mercy on the poor sales guy. You have no idea. It’s brutal out there.
No.Effin’. Idea.
I know someone in the car dealer business. He says the salesfolk are dying on the vine. He also says people are skipping out on safety in the maintenance department (he’s a mechanic, and knows his shit.) He can’t ever remember telling people they really need to get things done and having so many shrug their shoulders and drive off in unsafe vehicles.
The deals are very tempting if I want a truck or an SUV, but I don’t. There are too many better deals on craigslist anyhow. And having mercy on the poor sales guy sounds great, but I really do think they’d be better off trying to find a new line of work. Tell them to put on coveralls and get their fingers dirty a few days a week and they should be able to keep working at the dealership. At least they will if people are smart enough to maintain the cars they have. And can afford it.
With the inflation that’s about to kick in, I’m looking for a house rather than a car. If I’m going to play the market, I’d rather do it for someplace to live rather than something to sit in the driveway of a place I don’t own.
Heh, been there done that. 0% for 6 years well below sticker, and I did it in late 2006. My monthly payment on a $30K car is $32.00 more than my payment on a $20K car in 1996.