Despite Recovering Market, Incentives Continue

Now is a great time to buy a new car

Bear with me on this one, but in my opinion right now is a great time to buy a new car. There, I’ve said it.

Last year, particularly in the first quarter, automakers seemed to be giving away their cars by placing thousands of dollars on the hoods of their slow sellers in a bid to move them and reduce their inventories. I remember hearing about Dodge dealers marking down their big Ram trucks by at least $6000 with fully loaded quad cabs slashed by ten grand or more.

Read what the experts have to say when shopping for a new car.

Those days are over, but not the incentives people want. March was a good month for sales in part because rebates and low-rate financing were in abundance, but April will prove to be just as good a month for the reason that April is typically slower than March. Automakers don’t want to break the momentum and believe that pent up demand is fueling at least some of the showroom traffic.

And, with Toyota trying to get back business it lost earlier this year due to recalls and production stoppage, the deals from the world’s largest automaker will continue to be among the best ever offered.

Of course, if you aren’t ready to buy a car, then don’t. Good deals will be offered throughout the year as manufacturers ramp up production and battle for market share. The last thing anyone needs to do whose job outlook is rocky or finances shaky is to commit themselves to buying something they cannot afford. I’m not talking to these consumers, but to those who are ready to buy.

As always, shop around. Obtain price buying reports from Consumer Reports, Edmunds, KBB or similar type service. Know what car you want, the options you require and the price you are willing to pay.

Strongly consider arranging your own financing particularly if have the choice between taking a hefty rebate or opting for low-rate financing. But be warned: you may not be able to match the zero percent financing some companies are currently offering. Sit down with a calculator and run your numbers. Then be prepared to negotiate.

Try not to make your old car part of the deal. Or, negotiate your best price on your new ride and then see what your old car will fetch. This is where car shoppers lose a lot of cash: on what dealers will give them for their trade.

Don’t be pressured into agreeing on anything that doesn’t net you savings—the deals are out there, but you won’t necessarily find them placed in your lap.

Happy car shopping—take your time and you’ll find a new ride for a great price.

See Also — Why Do We Need Gap Insurance?

Chattanooga Wins Volkswagen Plant Competition

Volkswagen will begin building a new automotive plant in Tennessee this year that will have an initial build capacity of 150,000 cars annually when it goes online in 2011.

German automaker Volkswagen, who at one time had an automotive plant in Pennsylvania and then closed it, has decided on building an all-new plant in the US, selecting Chattanooga, Tennessee as the winning location. For the first time in two decades Volkswagen vehicles will be built in the US, an investment of $1 billion that VW says will create 2000 jobs.

“The U.S. market is an important part of our volume strategy and we are now very resolutely accessing that market,” said Prof. Martin Winterkorn, CEO of Volkswagen AG. “Volkswagen will be extremely active there. This plant represents a milestone in Volkswagen’s growth strategy. We will be selling 800,000 Volkswagens in the U.S. by 2018, and this new site will play a key role. This, along with our growth strategy, is a prerequisite for the economic success of the company in the dollar region. We look forward to establishing an important mainstay for ourselves when we become the biggest European carmaker there.”

“This is a significant step forward in achieving our goals in the U.S. market and a clear sign of the Volkswagen Group’s commitment to the North American consumer. Today’s decision is a fundamental part of our new strategic direction in the U.S. and our five-pillar strategy,” said Stefan Jacoby, President and CEO of Volkswagen Group of America. “Chattanooga is an excellent fit for the Volkswagen culture, having an exceptional quality of life and a long manufacturing tradition.”

The new VW plant will be located in the Enterprise South Industrial Park, a business park situated 12 miles northeast of downtown Chattanooga. Owned by the city of Chattanooga and the county of Hamilton, the 1350 acre site is certified as an industrial megasite by the Tennessee Valley Authority (TVA). Initial production capacity for the new facility is 150,000 vehicles, including plans to build a new midsize sedan that will be designed specifically for the North American market. Construction will commence later this year; production is scheduled to begin in early 2011.

Volkswagen expects to hire about 2000 people for the plant and expects many more jobs from related industries to also be created.  Alabama and Georgia which both border the Chattanooga area should also benefit from the new automotive plant.