DID YOU KNOW THIS COULD BE THE BEST TIME EVER TO BUY A NEW CAR OR TRUCK?

GM WAS THE ONLY MAJOR MANUFACTURER WITH A SALES INCREASE IN JANUARY.

The US auto industry just announced that new car and light truck sales were off 8.5% from the same period of sales last year. Slumping auto sales, historically low home sales and the mortgage meltdown are evidence of a slowing economy that has the Federal Reserve Bank cutting the discount rate dramatically.

Of the major manufacturers, only GM had a sales increase. GM’s sales were up 2.8%, led primarily by retail sales. In a strategic move to boost residual and future trade in values of its cars and trucks, GM has resisted sales to rental fleets. Those sales are historically low margin and used to keep plants running.

Manufacturers reporting declines in sales include Toyota, whose sales were off 2.9%, Honda and Nissan reported sales declines of 2.9% and 7.3% respectively, and Ford’s total sales were off 3.9% including fleet, but retail sales were down a full 9%. The big loser was Chrysler who reported their sales off by 12%.

But what makes this a good time to buy, when it is clear that the trend is down? The reality is that auto manufacturers business is building cars and trucks. If consumers don’t buy, plants get idled and the manufacturers lose money. This is the point where incentives take over. Even though GM’s sales were the only ones that were up, they were still no where near levels that will perpetuate production.

Like the stock market, the best buys are when the market is down. You can take advantage of incredible incentives to buy a new car or truck now. And at least for GM, the quality of cars and trucks offered for sale are the best in history. GM, for example, is offering 0% financing for up to 72 months on some models. That represents huge savings over conventional financing. GM is also offering rebates of up to $4,000, and this is after they cut window sticker prices significantly last year. Don’t think the incentives are just on leftover inventory. GM has incentives on just about every model in the line-up, including the 2008 versions.

As the Fed continues to cut rates and the government initiates an economic stimulus package, we know eventually the market will recover and new car and light truck sales will return to normal. Until then it is a buyers market. The quality has never been better. Cars and trucks are more fuel efficient than any time in our history. This is truly the time to buy. For more information about incentives and deals on GM cars and trucks, visit our web site at www.gmgiant.com, or visit us in Easton and Federalsburg.