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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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May 2009 Archives
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