Save Money on New 2014 Cars This SeasonFebruary 27, 2014
Polar vortexes, snow storms and all-around winter nastiness have frozen car sales this year. But dealerships’ loss could be your gain. Read on for ways to save on your new 2014 car.
The Outlook for 2014 Car Sales
American carmakers came roaring back in 2013, reporting their best sales year since 2007. Manufacturers have taken a few steps to become more profitable, Bloomberg reports, including increasing new-car prices, decreasing manufacturer incentives, and making more appealing cars, such as the popular Ford Fusion.
2014 promises to be an even better year. About 15.6 million new cars were sold in the United States in 2013; in 2014, the projection is 16 million. Rising demand and higher prices sound great for the auto industry, but not so good for buyers. According to Cars.com, the average car buyer spent $32,884 on a new car in January 2014, an increase of $721 compared to the previous January. Ouch. Despite higher prices, demand continues to increase, driven by a better economy and the ease of getting credit.
How wintry weather affects car sales
Here’s one bit of good news for new-car buyers: the snowy weather you struggle to drive through in January 2014 chilled car sales. Carmakers overall reported a 3.1 percent dip in car sales in January. The continuing cold and snow may cause a similar slump in February.
Some companies had an especially tough month — General Motors saw sales fall 12 percent and Volkswagen had a 19 percent decline. But the Chrysler Group, which has reported almost four years of sales growth, actually had an 8 percent lift in January.
If you’re searching for deals on new 2014 cars, keep in mind that dealerships in areas hit hard by winter weather may be anxious to unload the vehicles that went unsold in January. Manufacturers expect to make up for the decline in warmer months, but for the moment, customers may have the upper hand. The January sales slump means now might be a great time to shop for a new car. If you want to wait, try planning your purchase for late March, June or September, when salespeople are trying to meet quarterly goals.
The best new-car deals in 2014
Almost every manufacturer is offering zero-percent financing options on new cars in early 2014. You’ll also find major cash-back deals on last year’s models, such as $3,000 back on certain 2013 Mitsubishis and $4,000 back on the 2013 Chevrolet Impala. Check U.S. News’ summary of the month’s best car deals for more details. And don’t forget that every price is negotiable. Our guide to negotiating a lower car price can help you get the best possible deal.
Car Buying Guide
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