Good time to buy Used Car? (loan restriction lifted)

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Good time to buy Used Car? (loan restriction lifted)

Postby cherrygal » Mon Apr 15, 2013 1:47 am

Check with the car gurus out there...

With the 60-day lifting of the car loan restrictions on eligible used vehicles, is this a really good time to buy a used car?

The news reported that car dealers have cleared 1/3 of their eligible stock so far.

DH is thinking of getting one now coz he doesn't want to use so much cash to buy a car after this 60-day period is over. However he still has 3 more years left on his current car.

There are so many unknowns with 3 years to go... Will prices come down at all? Will the restrictions be lifted again?

cherrygal
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Re: Good time to buy Used Car? (loan restriction lifted)

Postby Dreamgear » Mon Apr 15, 2013 8:23 am

If you do a trade in now, be prepared to get less for your current car.

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Re: Good time to buy Used Car? (loan restriction lifted)

Postby atrecord » Mon Apr 15, 2013 9:24 am

If only buy and not sell (trade-in),

a) and if cash-rich, it is better to wait till temp lifting of loan curb ends, then dealer will have less customers, and be forced to price the cars cheaper and be open to negotiation.

b) if not cash-rich and definitely need to maximise loan, then better buy now when still can get it.


if got car to trade-in, the above still applies, but be ready to accept that if you buy after temp lifting of curb ends, while you get car cheap, your trade-in value will also be low.

And if you buy now, price is higher while trade-in value is likely higher too. But note that 2nd hand dealers might already be careful of the reprieve (they were staring bankruptcy before temp loan lift when they had plenty of cars and no buyers), and may not want to take in too many trade-ins from now on, esp. if it is nearer the end of the temp lift.

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Re: Good time to buy Used Car? (loan restriction lifted)

Postby cherrygal » Mon Apr 15, 2013 8:28 pm

Good insights everyone. Thanks!

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