Is now really the best time to buy a domestic car?
By Jason Buckland, Sympatico / MSN Finance
In this economy, our reaction to the demise of the Big Three automakers starts at, “Shucks, sad to see such North American institutions crumble like that,” quickly turns to, “The greed of those fat cats – good riddance!” and ends up somewhere in the ballpark of, “Hey, maybe there’s a deal for me hiding in all this mess.”
It's a pretty cruel progression, but we shouldn’t feel the need to apologize. If it’s not every-man-for-themselves out there now, it’ll never be.
So it’s with that in mind we present more fuel to the idea that now is the best time to buy a domestic car. It’s long been theorized that Buy Low logic applies to the auto market, but new information about retail prices, slumping sales and dealership incentives highlight just how low it really is.
Despite the gloomy business outlook for Ford, GM and Chrysler, prospective car buyers have little to worry about. “Very ironically, there’s never been a better time to buy,” a Ohio-based marketing professor tells Smartmoney.com. “Now they’re practically giving the damn things away.”
The Vancouver Sun reports Big Three dealers with slumping sales (down 9.6% overall in B.C. in 2008, for example, from a year before) are being forced to offer major deals or they’ll face going under. As a result, many now are more-inclined to toss around bargains like four-figure cash back incentives and 0%-financing to get you into their cars.
New numbers have also come to light that show why vehicles have rarely been this affordable for Canadians. Over the past 10 years, in terms of how many work weeks would be required for a Canuck to buy a new car, prices have been consistently dropping.
Down from a high of 24.1 weeks of before-tax family income in 1997, it took a Canadian household only 18.2 weeks to be able to afford new wheels in 2008.
All of this is moot, sure, if you buy a GM/Ford/Chrysler that turns out to be a lemon, but there are new developments on that front, too. When President Obama announced his government would back warranty claims from car owners should General Motors or Chrysler be unable to afford them, he surely put some confidence in those who wouldn’t even go near a dealership.
So as the Canadian government considers a similar kind of action to jumpstart sales, it’s at least conceivable that, yes, now might be a pretty decent time to buy domestic.
That’s what Tom Harris, from Nanaimo, B.C., tells the Sun, at least. He says customers have access to “the best deals he has seen in 25 years as a GM dealer.”
Posted by: Iam | Apr 2, 2021 1:24:02 AM
Pay down debt..... we are in a reccession! Real wealth buys (old fashion saving) not ability to borrow. If you are borrowing you are living beyond your means. How hard do we have to be hit over the head to understand this.
Posted by: Ann | Apr 2, 2021 9:15:59 AM
GM/Ford/Chrysler are not domestic to Canada. If they are considered domestic to Canada because they have plants in Canada, then Honda and Toyota should also be considered domestic.
Posted by: oldtimer | Apr 2, 2021 10:28:21 AM
For those who NEED a new or used car or truck, the deals are excellent right now, and that applies to the domestics and imports. Sales are down across the board. While all we seem to hear about is the suffering of GM, Chrysler and Ford, the sales of others such as Toyota, Honda, Etc, are dropping like a rock as well.
Posted by: middleclass | Apr 2, 2021 12:15:19 PM
The dealerships have been gouging comsumers for years. First, they complained about the canadian currency and people buying vehicles across the border. Now they are complaining that thier pricing is too low. I believe this is justice. I think the prices are still too high.
On the topic of prices that are too high, what about cell phone bills, what a joke. I refuse to have a cell phone because of the gouging that companies are putting consumers through. $30 a month should suffice for cell coverage, long distance, etc. $80-90 a month is robbery!
Posted by: Fraser Grunman | Apr 2, 2021 1:01:43 PM
For the first time in the auto industry it is you get what you pay for. Yes the big 3 are giving them away but its had a ripple effect thats forced other companies to offer incentives as well. Take Suzuki which makes a very quality product even offers great incentives off it's affordable crossover line in the SX4 and it's Grand Vitara which recently won motoring 2009's best SUV on the market
Posted by: Hadnochoice | Apr 2, 2021 1:55:22 PM
I was in a car accident recently and had no choice but to replace my vehicle. I got a great deal at Chrysler-and it is definately a buyer's market now with all of the incentives and loyalty bonuses and 0% financing. If you are nearing the end of a lease or need to replace your vehicle after an accident/theft then I'd definately encourage people to buy.
Posted by: Earl | Apr 2, 2021 2:10:43 PM
I agree 100% w/ Ann! I don't understand why people say buy domestic; My car was bulit in Alliston Ontario and my wife's in Cambridge by NON UNION WORKERS! Best damn cars built by Canadians. I will never purchase a GM, Ford or Chrysler product.
Posted by: George | Apr 2, 2021 2:53:55 PM
Domestic? As many have said before, there are no Canadian cars. Foreign cars are assembled in Canada, period.
Posted by: Joe | Apr 2, 2021 3:57:58 PM
There are great deals on cars but some of them are offer 8.5, 9.5% financing. What a scam!!
The prices that are posted are CASH prices. It's a hell of a deal if you can pay for your new vehcile out right.
Posted by: 32 years in the automobile business | Apr 2, 2021 3:58:43 PM
The World does not need any more gasoline cars , the deals maybe good but the domestic gasoline
vehicle is extinct , the World needs electric cars, hydrogen cars and ebikes , these vehilces will be
worthless in 5-6 years , used electric vehiles will become the new used car , don't get suckered into
a car deal that has no future , the tolerances on domestic vehilces are at there lowest point in history
the maintaince on domestic vehilce has become brutal over the past 10 years , brakes last 20km , the rquired service or schedualed maintaince has become high priced , domestic dealer's may not get you
at the front door like they once did but they'll get you in the service dept, so really where's the deal
think think think , the smoke and mirror show just keeps on getiing better and better and your gettin sucked right in with it if you fall for it , have you really ever met a poor car dealer , don'y fall for it the real deal is cars and trucks shpuld be $5000 cheaper than they are right now , wait wait wait
and you will pay less , you will be buying 2 year old new cars next year, just make sure you get them to change the rotors cus they be rusted right out , they will have to machine them down 20% to get them true and instead of nneding brakes at 25k you will need them at 20...... concerned for the suckers.....................
Posted by: Ford | Apr 2, 2021 7:05:32 PM
I'm in the market for a new vehicle but it won't be purchased from one of the North American manufacturers. There's nothing wrong with the products. The problem is with arrogant dealers and service departments. I don't suppose thats part of the reason they're in trouble. Customers wouldn't buy foreign just because they get better service - would they?
Posted by: Eric | Apr 2, 2021 7:53:55 PM
I am a high mileage consumer,so I shop around for a good low mileage used vehicle,I do my research on both domestic and foreign and every few years I purchase the car I want at a very good price and very little owing to the bank.Believe me there are plenty of good deals to be had out there,the banks and the new car dealerships may not like it,but hey,I love not having monthly payments.Don,t get sucked in by the new car hype !
Posted by: Steve | Apr 2, 2021 8:58:41 PM
Guys you need to support North American companies. Yes there are some token Japanese plants in Canada and the US but they employ on a fraction of the North American Auto Market. I work for a North American car company and I think we build World Class Cars and Trucks. The people in these palnts are proud of what they build. We have come along way and have cars and trucks that now exceed our competition. Supporting these companies pumps $ back into our economy.
Posted by: Andrewstation | Apr 2, 2021 9:01:00 PM
I am moving for work and my employer is encouraging me to sell my cars and purchase new one's at my destination. I've looked for decent US cars, and sadly, the inventory on the lots is pitiful. Sure, there are tons of low end Malibus and Impalas, but if you want anything remotely quality like a Lincoln or Cadillac, the inventory is pitiful. If I am going to wait 8 weeks to get a car, I will just buy the Audi or BMW I wanted in the first place.
Posted by: Jack Zufelt | Apr 2, 2021 9:15:16 PM
Absolutely. Today's deals are some of the best in a number of years and if you've got a quality car your driving now it will fetch a good deal from the used car lots because the demand is high right now. There's no better time to get a new car.
Posted by: Stefanie Hartman | Apr 2, 2021 9:18:14 PM
It's a great time to buy any car, not just a domestic.
Posted by: Ken | Apr 3, 2021 8:45:56 AM
I've read the comments posted so far. My car isn't even four years old, but if I was in the market for a new car, i wouldn't go near Honda, Toyota, Nissan, or any other "Off shore" based manufacturer. I owned one Honda and one toyota and will never buy another one! Both were junk! And their dearlerships? The salespeople and service departments were so rude and arogent I swore I'd never set foot in one again! As for the North American based companies, well, I'd never drive a Chysler or GM anyway, except for maybe a 1963 split-window Corvette. As for my manufacturer of choice, I'd love to buy a Canadian built vehicle from their factory. However, one factory builds police cars and luxury cars while the other builds two Cross-overs, which I'm not into! The car I love is built in Mexico! So when I do decide to buy another new car, I guess it's going to come from the same factory my current car came from, in Wayne, Michigan. As far as I'm concerned, the quality of cars from that facility far out-performs anything from Cambridge or Allison. That's my experience! Now if only Ford still made the Focus in a wagon! And by the way, I have no problem with waiting eight weeks to get a car! That way, I get exactyl what I want!
Posted by: moe | Apr 4, 2021 12:50:42 PM
Many great comments, but "Pay down debt" and "live within your means" are the two many seem to forget(maybe purposely). Save then buy what you can afford. We have just purchased a new family vehicle...and were forced to purchase other than "domestic" due to the POOR quality and ride.
Our last three vehicles were Dodge caravans and we hoped to replace with the same, but the interior quality and ride was shameful for the 2009 model..
Posted by: '99 minivan | Apr 6, 2021 2:32:13 AM
I drive a '99 Windstar. I don't care how good the deals out there get. Why buy a new vehicle if yours still runs fine? People get so caught up in having flashy new veciles. Crazy. Take the money you would spend on monthly payments and save for a rainy day. Food for thought...Vehicles will never be worth what you paid.
Posted by: 300cthatwillripyouappart | Apr 6, 2021 11:54:51 AM
For all the domestic haters you really need to study your facts. You people seem to give a Japanese brand a free pass because, well there Japanese. You might want to take a look at the J.D power site for vehicle dependability. Kind of funny how high some of those "crap" American companies are high on the list. By the way that is for 2 year old cars and the problems they had with them in that time period so these are 96 models. Domestic reliability and dependability being worse than Japanese and European is just complete B.S The big three do still have allot to do but if we can make it through the next year. The new products will be the building block to return Americans and Canadians to the big three. I truly believe that the steps being taken now are the right ones.
Some people say the big three make cars no one wants to buy I call B.S on that two, my 06 300c rips and it has 130000 km's on it. No unscheduled trips to the dealer for breakdowns. Only trips to the dealer were for oil, brakes, regular maintenance. Car runs like new. Ya I know it’s a hemi but I average 11 liters per 100 kms. And there are 2 smaller fuel efficient engines in that car if you don’t want a ripper 300. A new American car industry will make people proud to drive an American brand by earning the publics support.