Now is the Time to Buy

If you are considering purchasing a new car and getting an auto loan, you are going to want to do it soon. The economy is bound to start taking off again soon, and when it does car loans are going to end up being for a lot more money that they are now. Talk about striking when the iron is hot – it isn’t going to get much hotter!

According to a recent study, car prices are at a thirty year low compared to the income that people are bringing in. They take this information based on car sales and auto loans as compared to how much money people are making yearly.

They say that Comerica Bank’s Auto Affordability Index shows that a $26,000 car takes the average family 21.5 weeks to buy. However, in December of 2008 it tool 22.8 weeks to buy, which was still lower than in 1979. They say that a combination of dropping prices and offering large incentives to people to take out auto loans is what has led to this large difference in monies due.

Between the incentives and lower pricing, customers can take advantage of a car that is cheaper than it has been in 30 years and probably cheaper than it will be for a very long time. They say that it is really about the record of affordability that shows how car prices are dropping while income is going up. So it might seem like things are bad, but they could be worse. Auto loans are also for less money as the car prices are lower, but the amount of money that people are putting down on a car is higher.



 

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