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New industry reports from TrueCar show that manufacturers are ramping up incentives to counter a slow down in January auto sales that is being attributed to poor winter weather.
‘Incentive spending by automakers averaged $2,932 per vehicle in January,’ TrueCar reports, ‘up 13.4 percent from a year ago and down 4.2 percent from December 2015.’
So right now is a great time if you’re interested in anything that’s a traditional car, not an SUV or a crossover.
In the auto business, dealers and manufacturers aim to have a 55-day supply of cars on lots. That’s the theoretical number of cars that if manufacturers didn’t make another, dealers could sell what they have on the lot for 55 straight days. Fifty-five days represents a healthy inventory cycle. But right now, a number of manufacturers have over a 90-day supply on hand. That means they are way overstocked and that the incentives will continue to rise as your bargaining power gets better at the dealership.
Both Toyota and Honda are seeing declining sales. Nissan is flat. However, U.S. automakers that have a heavier reliance on SUVs are still reporting good numbers.
Toyota’s Scion brand is being phased out after failing to attract people in their 20s. Part of the problem was the nameplate got very heavily into passenger cars and missed the move in the marketplace to crossovers. With Scion becoming an orphan brand, I’m expecting we’ll see great deals on both new and used Scions in the coming weeks.
Read more: Here’s why you should never use your hazard lights while driving
Generally, across the auto landscape, passenger cars or any of the alternative fuel cars are very much a buyer’s market right now. Meanwhile, the value of used vehicles is dropping significantly. So this is a really good time to buy anything that is a true car vs an SUV or crossover.
If you’re in the market for a new car, here are my tips for making a smart purchase…
Read more: 7 winter driving tips to keep you and your family safe
This post was last modified on May 8, 2019 11:43 am
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