Posted by Lisa Strawbridge - email
TOLEDO, OH (WTOL) - As the Greater Toledo Auto Show opens, dealers want potential customers to know about the incentives to buy. But in a tough economy, many people still aren't sure if now is the time to get that new or used vehicle.
Greg Goatley with Ed Schmidt Auto Group points out the cash back incentives. "They're offering good incentives to people 2, 3, 4, up to 5 and $6,000 on some GMC models."
Another incentive is the tax credits. A new car owner can write off the taxes paid on the vehicle. There's an additional tax credit for buying energy efficient vehicles such as the Ford Fusion Hybrid.
It's important to determine a budget when considering a new car. Robb Brown with Brown Automotive says there are cars at the auto show for every price point beginning at $12,000 for the Chevy Aveo up to $120,000 for a custom Chevy Corvette.
Another important consideration is to choose between buying a new car or a used car. A little math can help determine that decision. A new car may run $20,000. As an example, say $3,000 is put down and the rest is financed at 6.3 percent for three years. Adding up the insurance, maintenance, and the BMV fees, the total spent the first year is $11,000.
Used cars are financed at higher rates. A car can be purchased for $10,000. As an exapmple, say $2,000 is put down and the rest is financed at 8.0 percent for three years. The total expense for the first year is $6,750, which is about $5,000 than buying new.
As always, borrowers with a credit score above 740 will get the best rates.