Why Buy Now, Part 1

Right now is one of those good times to buy because new vehicle inventories are currently high at many dealerships.

By Jim Bohen, Star Tribune Sales and Marketing

Last update: April 5, 2006 - 12:24 PM

The old advice for consumers on when to buy a car goes like this: Buy during the December holidays and at the end of the year because that's when most people are shopping for other things and dealers are striving to reach annual sales goals. Late summer or fall, the advice says, is also a good time to buy because dealers need to clear space for new models.

But the old advice only goes so far these days. New models come out at any time, there are other times when dealers are less busy - this month is an example - and incentives and other factors make what the calendar says less important when it comes to choosing the best time to buy.

That's why right now is one of those good times to buy a new vehicle. More people "hibernate" when it's cold, and some don't want to buy new vehicles when it's harder to keep them clean, so consumers who aren't into crowds will find dealerships easier to navigate now. People who venture out will also find some very good deals because new vehicle inventories are currently high at many dealerships.

"The incentives on remaining 2005 models - and remember that these are new cars - are some of the biggest I've ever seen," says Curt Johnson, general manager at Brookdale Buick-Pontiac-GMC, Brookdale Chrysler-Jeep and Brookdale Dodge, all Luther dealerships. "And the lease programs on 2006s are also as good as I've seen."

Though interest rates are rising, some carmakers are keeping their rates low to attract buyers or offering larger cash rebates. Non-traditional incentives like free fuel, "lifetime" oil changes, extended service warranties and travel offers may also be available.

"It's an aggressive marketplace and so that's good for new or used cars," says Mark Hoel, general manager of Village Chevrolet. "There are strong incentives because it's not the peak selling time. Many people just don't start thinking about a new vehicle until the Auto Show, which happens in March. People should also know that the amounts dealers pay for trade-ins have held up, so anyone coming out to buy now can do well for themselves."

The old advice about when to buy may not be out of date, but it doesn't describe the only times, such as this month, when it's a good time to consider getting into some new wheels.

Jim Bohen -St. Paul freelance writer

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