Mike’s Car Blog

This isn’t a great time to be looking for a job. It’s a terrible time to be selling a house. And running a small business? This economy is far from forgiving. But if you’re looking to buy a new car, this might be the best time in decades.

Car dealers are desperate. That means that they are offering better deals than ever. Offers of zero-percent financing for three years or more aren’t unheard of. Manufacturers are willing to offer a host of incentives to move cars off of their dealer’s lots.

It’s all enticing stuff, especially if you’re driving an older model car that has a few dinks and dings. After all, every time you flip on the TV, there’s a gleaming new car ad urging you to plunk down your hard-earned dollars for the latest models. And then there are those amazing incentives.

But despite the incentives and the relative affordability of most reliable cars today, this still might not be the best time for you to buy a car. Sure, your dollars will stretch further at the car dealerships today. But if you’re not ready financially to buy a car, all the incentives and bargains in the world won’t make this the best time to buy.

Before stepping into that dealership showroom, take a long look at your personal financial situation. Is your job stable? Or has your company been laying workers off? If you’re not confident that you’ll have a job next month, this might not be the best time to purchase a new car.

If your annual income has taken a hit, whether through unpaid furlough days or an elimination of overtime pay, you might not be able to afford even a small monthly car payment. Remember, your other expenses won’t be going away. Can you afford paying $300 to $500 a month in a new car payment?

On the other hand, if your income and job are both secure, this might be the best time in years for you to buy a new car. Dealers are willing to negotiate on prices today. They don’t want to turn any potential buyers away. Because of this, you’ll be able to land some impressive deals.

Don’t forget to look at your existing car, too. Is it reliable? Or is it an adventure every time you try to start it up? If you need a reliable car to get to work every morning, you might need to replace your older model car with a newer one. If your old car, though, hasn’t given you trouble, maybe there’s no reason to upgrade. A reliable car is a great gift; you shouldn’t give up on one too easily.