However, Phil Reed, consumer advice editor at Edmunds.com, told CNN Money that instead of a time for hesitation, the auto industry’s downturn could offer the perfect opportunity for consumers to score a bargain on wheels.
Dealers are eager to do business with potential buyers because they are currently maintaining excess inventory in their showrooms. The length of time the cars sit unsold correlates with the amount the dealer pays in financing costs – so, it is actually in their best interest to make you a deal.
And with new figures from Autodata revealing that U.S. vehicle sales fell by 27 percent last month compared with the same period in 2007, some car companies may be getting desperate.
In fact, a few automakers such as Toyota and General Motors are currently offering promotions including 0 percent financing to sweeten the offer and lure buyers.
“The discounts are almost unprecedented,” Reed commented. “If your credit is good, you shouldn’t have a problem.”
Automotive sales team member Mick Patkes of Tjelmeland Laketown Automotive in Illinois agreed that a clean credit history will go far when you are trying to get a car loan.
“If you’ve got poor credit, that’s being scrutinized more – but not good credit,” he told the State Journal-Register.
You can find out if you have good credit by checking your credit score. A score of 680 or higher is generally considered good.
CNN Money suggests that buyers look at car loans that last for 48 months or less, to limit the amount of interest paid over the long term.
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