GM, Ford Sales Slump - Better Deals?
Manufacturers and dealers are officially starting to worry about weakness in car sales. Last month marked the seventh consecutive monthly decline in sales volume, even as incentives have been climbing.
Overall car sales dropped by nearly 7% last month compared to the year-ago period. Passenger car sales fell a whopping 15%, as car shoppers continued to pile into SUVs and pickup trucks. But even those popular segments fell by nearly 2% last month.
GM and Ford have been hit particularly hard - with GM sales down by 15% - (with Buick down over 30%, and Cadillac down nearly 22%). Ford sales were down by 7.6%.
Hyundai has also lost its luster, with sales down 30% (but much of that is due to lower fleet sales to rental agencies).
So, what does all this mean for new car shoppers? Well, incentives are mainly driven by car sales and inventory levels. The longer this sales decline keeps going, the more inventory will build up - unless manufacturers cut back on production. But sooner or later, we're going to see a major manufacturer pile on incentives to move units quickly, and when/if that happens, other brands will usually follow.
If you have the time and patience, and as long as the vehicle you're interested in is in good supply, it may be worth your while to wait until end of fall or end of the year before purchasing, as deals may get even better. I will keep my readers posted of new deals in the meantime.
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid