7 Reasons Are Enough To Purchase A New Car In Recession

If you desperately need a new car, you don’t really need my justifications. But if you are not sure and looking for some reasons, here are the best ones. The economic conditions of our nation have propelled automobile manufacturers to provide some of the best deals you can ever dream of. Yes I know it’s quite difficult for you as a customer to afford a new car in such depression period. There are many other ways to travel like public transportation, Enterprise, or ZipCar, which can be quite within your means. However, buying new car is your only choice; this is the best time to buy a car.

1. No Sales Tax

   Generally you are charged a modest amount as sales tax on purchase of most of the goods. However, you can write this off when you file your tax return for 2009. Not on any article, the deduction is just on the purchase of cars. And not on any car, it is deductible on the purchase price of cars bought between 16th February 2009 and 1st January 2010. Recession seems to be helping you for the first time. The deduction is granted to boost the sales and improve the condition of the automobile industry.You think that would be a very small amount, probably in double figures? Consider this example: You bought a vehicle of $40,000 and you otherwise have to pay 6% sales tax i.e. $2,400. Let’s say you pay 25% tax as per the tax slabs. The amount you save on buying a new car is $600. Is it still very tiny?

2. Bigger Discounts

   Along with government, automobile companies also seem to welcome you desperately. Many such corporations are offering either enormous discounts or employing pricing. Some are presenting both. One of the reasons to buy now is because it’s less likely to find such deals later. This is a period when the automobile industry is undergoing various adjustments in the production capacity because the inventory of already produced automobiles is high, hence such rebates. Once they reach back to the level where demand and supply is equated, prices are sure to soar high.

3. 0% Financing

   The downturn of economic trend has led car makers to provide such offers that have never been witnessed. Some companies, like Ford, offer 0% financing to the customers whose credit score is in good health. So, you now don’t have to give away your lifetime savings as down payment.

4. Secured Warranties

   What else do you want if you cars are secured by warranties supported by government? If you are among those who have purchased their cars this year post April, check for warranty backed by TARP offered by companies like GM and Chrysler. Ford, being a domestic player, is qualified to offer such warranties. However, overseas brands cannot enjoy this benefit. So, if you have decided to buy a vehicle, go for a national brand and don’t forget to ask for such warranty.

5. Payment Security

   Along with warranty security, the American car-buying population can also avail income protection. These plans assure to minimize the loss incurred by you due to job loss. For instance, the ‘Assurance’ plan by Hyundai and ‘Total Confidence’ by GM are some of the prevailing protection plans that you can look for. However, wait for a while if you want to avail such facility in your favorite brand, because other players are sure to follow the trend soon. Do remember to read the conditions mentioned in fine print before purchasing any car with payment protection.

6. The boon of Inflation

   People well aware with general economic trends can easily predict the impending inflation that is sure to follow. In layman’s language, 10 apples today will worth 5 apples tomorrow. So, which is a better deal, 10 apples today or 5 apples tomorrow? Purchasing a car at discounted rates with zero % financing is quite justifiable.

7. For the Economy

   This reason may work much toward your personal benefit, but at least it’s enough to assure that you are being a part of the plan that’s working to improve the economic condition by purchasing a new car. However, you won’t contribute much if you buy a vehicle of foreign brand. So, be good, buy domestic. This reason doesn’t motivate you? All right, let me correct the title “6 reasons are enough to purchase a new car in recession” But if you buy for the economy, is it a virtue or patriotism? Who cares? You get a vehicle at lower price.

These 6 + 1 reasons are impelling enough to go for a vehicle in today’s declining economy. For those who had already decided to purchase a new car, no other time can be better than this one.