Finally, there’s some good news for consumers who are thinking about buying a vehicle and are waiting until the prices hit bottom. Not only are the automakers desperate to move inventory off their lots, but recent data shows that car shoppers are negotiating hard and getting fantastic deals.
In April, vehicles that were sold had their lowest transaction price as a share of MSRP since 1991, falling to 78 percent, CNW Research’s data found. Basically, this means that consumers only paid 78 percent of the asking price, or manufacturer’s suggested retail price.
If you’ve been waiting for car prices to hit bottom, the time may have come.
CNW reports that in the first four months of 2009, the vehicles sold had an average transaction price 79.54 percent of MSRP. In comparison, 2006’s full year average was 82.56 percent. The difference translates into billions of dollar in lost sales revenue to both dealers and manufacturers.
While this is bad for the dealers and manufacturers, this is good for consumers. Dealers are practically giving cars away. They are willing to take a loss financially to sell vehicles.
Another positive for consumers CNW found was that in May, only 19 percent of independent used-car dealers report having a “very” difficult time getting financing for customers who need a car loan. That’s down from 51 percent in October 2008.
Prices have most likely hit rock bottom and auto loans are easier to find. For the American car shopper, things just keep getting better.