AAA: 1 In 5 Floridians Plan To Buy A Car In 2016
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ORLANDO (CBSMiami) - Low gas prices and income tax refunds have car dealerships smiling.
According to a recent AAA Consumer Pulse survey, nearly 1 in 5 (19%) Floridians are planning plan to buy a new or used vehicle in 2016.
Auto sales are expected to rise from 17.4 million to a record setting 17.7 million vehicles in 2016, says the National Automobile Dealers Association (NADA).
Compared to last year, auto sales rose 6 percent in January and February, due in part to increased wages, low interest, and discounted gas prices. The average price for a gallon of regular unleaded gasoline is expected to be $1.89 in 2016, down more than 54 cents per gallon from last year's average, according to the Energy Information Administration.
Americans are saving nearly $300 million a day on gasoline compared to the peak price in 2015
"While gas prices have been pushing up in the last few weeks, American families are still seeing significant savings at the pump," said Duane Williams with AAA's Financial Services. "That's extra money that can be put towards a vehicle purchase. We expect to see car sales increase as the weather starts to heat up and consumers have extra money in their pockets from tax refund checks."
Interest in sports utility vehicles and light trucks has increased as gasoline prices have remained low. Nearly 25-percent of those surveyed says they were leaning toward buying a less fuel-efficient vehicle, like an SUV or truck, due to cheaper gas. The Ford F-150 is the 4th most search vehicle on AAA's Auto Buying website and sales for light trucks are up more than 12 percent from last year.
The majority of car buyers (74%) say cost is the number one factor when purchasing a vehicle. One way buyers can save money when purchasing a car is by knowing their financing options before they start shopping instead of relying solely on the dealer's financing plan.
AAA Auto Buying Tips:
- Shop around: Pick three or four models and price them out before you meet with a salesman. If you pick one specific make/model, you're more likely to settle for the offering price.
- Shop online: You will know the value of the vehicle you like before you get to the lot. In some cases you may get the best deal online.
- Dress to un-impress: Don't flaunt your wealth to a dealer. They're less likely to negotiate.
- Don't rush: Avoid emotional sales, buying more than you can afford, or being upsold.
- Timing is everything: Most dealerships offer their best deals at the end of the month, end of the year, and when they want to unload last year's vehicle to make room for the new model.
- Don't mention your trade-in too soon: Wait until after the purchase price of the vehicle being bought has been negotiated. This way, the dealer is locked in to the negotiated price. Otherwise, they can manipulate the trade value and ultimately the cash price.
