If you're looking to buy a new car, now is the time. Interest rates, although rising, are still at historical lows, and along with buyer incentive programs like the highly successful "employee discount," the end of 2005 is a great time to purchase. Many indicators point to a slowing economy, so consumers should take advantage of the rates and the willingness of dealers to clear their lots at year end.
With interest rates still at historical lows, buying a new car is an attractive option. Even though the Feds have raised the interest rates several times over the past eighteen months, they are still lower than they were in the 90s and are certainly at a favorable rate for great financing. Someone with good to excellent credit who is looking to purchase a new vehicle should do so now, before the rates go higher.
The sale of cars in the U.S. remains very strong, despite an overall decline in many sectors of the national economy. Even the red hot real estate market has started to trend downward, but the sale of automobiles continues to speed on. With the threat of more rate hikes, the cost of the recent hurricane disasters, rising unemployment and inflation, the continuing high car sales are an important gauge of consumer confidence. However, recent indicators show that that confidence is falling, making the last quarter of 2005 the time to purchase a new vehicle, before the beginning of a new year and a very uncertain future.
Along with the low interest rates is a new buyer incentive program, which has been seen all over the television this Summer. Certain car manufacturers have been offering their "employee discounts" to the general consumer. In other words, the discounted price paid by an employee of the car company has been passed on to the general public. This has been very successful, resulting in an upswing in car sales so substantial that the offers have been extended. These are American companies offering this type of saving. Foreign cars, Japanese in particular, traditionally sell well without incentive programs.
The end of the year is typically a good time to buy a new car anyway. From September on, dealerships are trying to clear off their lots to get ready for a new shipment. This, along with the current low rates and incentives, makes this time a great one for buying. Business for car dealerships tends to slow down around the holidays, making for extra consumer leverage in getting the perfect deal.
There’s a new 401k coming to town.
Beginning in January of 2006, a brand new retirement savings plan will be unveiled called the Roth 401k. This new plan allows for "after-tax" contributions as opposed to "pre-tax" dollars with a traditional 401k. Upon withdrawal at retirement, no tax is due, which is not the case with a 401k, since the tax has been deferred and is due at retirement. Check with your employer to see if the Roth 401k will be implemented; a recent survey shows that 31% of employers will offer it.
Do you know your 401(k) plan?
Taking full advantage of your 401(k) – how well do you know your plan.
Save yourself from homebuying disasters.
Buying a house will most likely be the most important purchase you make in your life. The lenders and agents are counting on you to walk blindly into your home purchase. Make them work for you. Take the extra time, arm yourself with the knowledge of home buying and lending practices in order to make informed, sound judgments and decisions.
