The month of June and July is the best time to buy a new car in 2009 if price is your first consideration. Declining sales and manufacturing cutbacks result in manufacturer incentives making this a good time for buying.

At the current sales rate, U. S. sales would come in at just more than 9 million for 2009 according to the Association of International Automobile Manufacturers. For the same period in 2007, 16.2 million cars and trucks were sold in America.

With factories closing, manufacturers might not be able to replenish the pipeline quickly in the future. As we move toward the fall sales period buyers may not have the choices they do today with the large incentives.

Dealer inventory of Ford Motor Company products is declining due to a stronger market position than GM or Chrysler, but Ford is still offering some of the best incentives seen in years. The 2010 Ford Fusion, however, would likely not be on the product incentive list because it is a top selling vehicle and the market for it continues to grow. Fusion sales totaled 18,321 in April 2009, a record for any month. April was the first full month of sales for the 2010 model but a few 2009 models can be spotted on dealer lots with a markdown price.
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Rising gasoline prices and the lack of financing will continue to impact the sales of many vehicles.

Vehicle buyers are advised to understand what car or truck they are looking for and what their budget will pay for before entering the showroom. Dealers want to sell you the car or truck that will either make the most profit for them or drop inventory levels of cars that are not selling. Understanding what the dealer paid for the car also helps the buyer understand how much room the dealer has to negotiate. Many web sites offer manufacturer pricing.

If a trade-in is involved make sure that the vehicle is clean and free of sheet metal damage. Clean the engine and degrease the vehicle underneath. Find the wholesale value of the car in the Kelly Blue Book, or a similar resource. This price should reflect the price you can expect the dealer to offer you unless this model was a popular new car model and the used car inventory is higher than demand. Steam cleaning the engine will help sell the vehicle but this may not be a wise decision because the moisture may harm the engine electronics in older models. A local dealer can advise you.

The best strategy for executing a new vehicle purchase is deciding what vehicle you want and what you will pay for it, and what financing terms you need - all before entering the showroom. The minute that the eager car salesperson captures you make this statement: “I have just one hour to get a deal done. Can we do it?’ It is strongly advised to let the salesperson know that you will not be waltzed around from person to person until you buy a car out of frustration. Keep reminding the salesperson how many minutes of the hour are remaining.

Another dealership ploy that many buyers find frustrating is the finance manager or the closer. These people have a job to do but you should avoid the hard sell for products like life insurance, high value extended warranty coverage, wheel replacement insurance and many other plans and products that add to the cost of your vehicle unless you actually want these protections.

Try to arrange financing before going to the dealer and tell the dealer you do not want them to check with every car financing company the dealer can think of. This should be avoided because a car financing organization will check the customer’s credit when the dealer submits a finance inquiry on behalf of the customer. If the customer is not careful they could leave the showroom with a trail of credit inquiries which will surely lower their credit score. Multiple credit inquiries in a short period of time will drop the credit score for an indeterminate period of time.

Be aware that dealers often get a “kick-back” from a finance company when the dealer refers business to that particular finance company. This issue is an ethical argument that has been made over and over but the dealer does do a lot of work on behalf of placing the loan, and thus dealers view the practice as justified.

New vehicle financing is best arranged directly by the buyer. Until the buyer and salesperson have agreed on a sales price refrain from mentioning that financing has been arranged. A survey conducted in January 2008 by the Michigan Automobile Dealers Association revealed that cash buyers believed they received no benefit for paying cash. In some sales the dealer openly acknowledged that loosing the finance “kick-back” was no incentive to give the cash buyer any break.

Be wary of the salesperson that asks “how much do you want your payment to be?” This question is a road map for the salesperson to find a number of financing arrangements that meet your monthly payment requirement but the terms may be unacceptable to you.

Do not take the vehicle off the dealer’s lot on the assumption that you have bought it with an approved loan. Many buyers take the vehicle home and show it to the family, neighbors, work colleagues and others only to receive a call from the finance or sales manager the next day saying that a problem has come up. If you sign an agreement to buy a car, but not a final loan document, you do not own the vehicle. The dealer can shop the loan; tell you that all they can do is offer you the high interest loan; or tell you that you must find financing. Make sure you have a completed loan agreement before you take the car. A completed loan agreement will stipulate the monthly payment, the term of the loan, the vehicle pricing that has been financed, and information on where to send payments, the date first payment is due, and a customer service number.

Never sign any document with blanks presented to you in the dealership. If a blank line does not apply mark it with an “N/A” meaning not applicable.

Another caveat is to avoid taking advice from relatives and friends. Some of these folks may be savvy shoppers but unless they buy many cars a year they are likely to be no more knowledgeable than you.

Take advantage of the sales incentives if the total pricing and finance terms are completely acceptable to you. Many buyers find it more desirable to get the newest model with the latest technology and pass on the prior model incentives. In recent model years car manufacturers have been offering incentives on new models but not on the models that are hot sellers.