James Jensen checks out a Toyota Prius while car shopping in Braintree, Mass. Some Toyota models are in short supply this summer. (Jonathan Wiggs / New York Times News Service)
Summer can be a tough time to buy a car -- especially this year, with some shortages and a lack of big deals. However, if your vehicle is on its last leg or your lease is about to come due, here are some tips on getting the most for your money.
Consider cars with incentives. Manufacturers still offer some incentives, especially for cars that are near the end of their model cycle or are slow sellers. Most of the big auto-information companies, including Edmunds.com, TrueCar.com and Kelley Blue Book (kbb.com), offer incentive data on their websites.
Check the supply. While inventories are tightening across the board, some manufacturers will have ample inventory for some vehicles, and they will have the better deals. TrueCar's TrueTrends report offers a monthly listing of new vehicles with the shortest and longest inventories.
May's report, for example, found that Hyundai dealers had only an eight-day supply of their hot-selling Elantra sedan. However, a BMW Z4 -- which is about to be replaced with a new-generation model -- had a fat 161-day supply in May, more than five months' worth.
Be a contrarian. For now, that means bigger. With many buyers gravitating to smaller, fuel-efficient vehicles, consider getting something that drinks a bit more gas. Yes, it will cost you more each time you go to the pump. But as small-car prices rise, you might find that the price gap between a compact vehicle and something larger has narrowed considerably. Large cars and trucks have had the biggest discounts lately, and that's likely to be the case throughout the summer.
A truck loaded with Ford and Lincoln vehicles travels from Canada to the U.S. (David Duprey / Associated Press)
Don't be wedded to a brand. Domestic makes, as well as Hyundai, Kia and German manufacturers, have not suffered the supply disruptions incurred by the Japanese brands. Ford, GM and the South Korean makers all have models that drive well and are as fuel-efficient as the popular Japanese nameplates.
Consider leasing. When interest rates are low and projected resale values are high, as we are seeing in the current market, manufacturers can offer attractive lease deals. Many people don't like leases, because they amount to long-term rentals and you don't have a car to drive at the end of the contract. But with the market so confused, it might make sense to lease a car and figure you can purchase a vehicle 36 months from now, when things will be more settled.
Get an extension. If your lease is running out, ask for a six-month extension. Some of the Japanese automakers are beginning to offer extensions just to keep you out of the market until they have a better supply. They want to keep you from defecting to a rival automaker.
Don't assume used cars are a better deal. The market is seeing prices jump for used cars. There's a shortage dating back to industry events of two and three years ago. Dealers are bidding up the price of used cars as they try to build their inventories to have vehicles to sell as the supply of new cars shrinks.
A 3-year-old midsize car averages $13,700, according to Kelley Blue Book. That's up $4,500 from the $9,200 a 3-year-old midsize car sold for in 2007. Compact cars are up $3,500, to $11,200. Carefully research models and pricing at used-car information sites such as AutoTrader.com. You might be better off buying a slower-selling new vehicle than a late-model used car that's a hot seller.
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