New versus Used
The chaos and unusual circumstances surrounding the automotive world are still creating market confusion and make logical business decisions regarding vehicles a challenge. Some of us are looking at business decisions while others may be considering a vehicle purchase for personal use. Let me make a few quick observations for each.
If you are in a business position to consider fleet purchases in the next year, take time to consider the total cost of purchasing now versus waiting till spring. While cash flow is always an important consideration, the cost of money is very attractive at this time. Most manufacturers are offering no or low interest financing, and have tremendous fleet purchase incentives as well. Combined with a used car market that remains inflated, the opportunity to make great deals is prime.
Business owners and finance departments will also do well to consider the tax implications of purchasing now versus waiting till next year. Depending on the bottom line of the organization, there may be some real benefit in spending a little of the capital reserve before the end of the year.
Personal vehicle purchases are similarly attractive at this time. End of year inventory remains available for bargain hunters and combining discounts on the closing model year vehicles with no or low interest financing can present great savings opportunities for smart buyers.
I recently compared a new 4x4 extended cab truck with a two year old model with matching options. With rebates and finance deals, the new truck could be financed for the same payment and total cost as the used vehicle. The buyer was amazed to see the results, as he had never considered a brand new truck for his business.
Current market conditions are not what we have all become accustomed to as "normal" in the automotive market. Savvy buyers need to do the math. Compare the financing options versus the lost income from outright purchase investment. Look at new versus used with an open mind. The results may surprise you.
If you are in a business position to consider fleet purchases in the next year, take time to consider the total cost of purchasing now versus waiting till spring. While cash flow is always an important consideration, the cost of money is very attractive at this time. Most manufacturers are offering no or low interest financing, and have tremendous fleet purchase incentives as well. Combined with a used car market that remains inflated, the opportunity to make great deals is prime.
Business owners and finance departments will also do well to consider the tax implications of purchasing now versus waiting till next year. Depending on the bottom line of the organization, there may be some real benefit in spending a little of the capital reserve before the end of the year.
Personal vehicle purchases are similarly attractive at this time. End of year inventory remains available for bargain hunters and combining discounts on the closing model year vehicles with no or low interest financing can present great savings opportunities for smart buyers.
I recently compared a new 4x4 extended cab truck with a two year old model with matching options. With rebates and finance deals, the new truck could be financed for the same payment and total cost as the used vehicle. The buyer was amazed to see the results, as he had never considered a brand new truck for his business.
Current market conditions are not what we have all become accustomed to as "normal" in the automotive market. Savvy buyers need to do the math. Compare the financing options versus the lost income from outright purchase investment. Look at new versus used with an open mind. The results may surprise you.
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