Sep 8th, 2009 by Ross Edwards
The cash for clunkers program was great for new car buyers and dealers alike. Now that the program has ended, dealerships have a stronger bargaining position than they have for months. The popularity of the program helped dealers run through all that extra inventory they’ve had on the lots since auto sales slowed to a crawl late last year. And since we’re all familiar with the concept of supply and demand, you’ve probably already put together that this means cars are going to start costing more.
That means that even though automakers are still offering great deals in the form of cash back rebates and low interest rate car loan incentives, a new car buyer can’t walk into a dealership and negotiate as much off the price of a car now as they could a few months ago.
While your negotiating position is not as good as it was a short time ago, that doesn’t mean a new car dealer can name their own price and you have to either pay it or walk away. Think of it more like a reduction in your advantage.
“With inventories having been cleared out by Cash-for-Clunkers, consumers will find that the playing field between dealers and shoppers is more level than it was six months ago,” AutoTrader.com President and CEO Chip Perry said.
According to Autotrader, the price for new cars on the site crept up almost universally thanks to cash for clunkers. Only a few models were listed for sale with an average price lower than last year’s. Ford saw the largest uptick in selling price. The average price for an F150 rose by 16% compared to last year while the Fusion’s average asking price rose by 13%.
Even though asking prices are on the rise, you can still negotiate a great price on a new car. It just won’t be as low as you could have gotten a few months ago. Still, you aren’t doing yourself any favors by putting off a new car purchase right now. We’re still in the best buyer’s market in the history of the automobile, but it’s slowly and surely getting back to normal.
The awesome new 2010 Ford F150 SVT Raptor is one vehicle you probably won’t be able to negotiate thousands off the price of.
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