Move over Detroit, car buyers are in the driver's seat

(CNN) -- If you're in the market for a new car, here's a bit of good news: You're in the driver's seat.

With auto sales slumping, dealers in the United States are working harder than ever for your business. And it's not just friendly banter and cookies they're offering to showroom visitors.

Savvy car buyers these days can get a good deal on wheels and at the same time drive home with any number of perks, from cash rebates to discount financing.

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Demand for cars is waning because, ironically, quality has improved. Gone are the days of planned obsolescence; Detroit these days is building cars to last. But in the process sticker prices have gone up to the point where consumers are waiting longer before replacing their old cars.

Overall unit sales of new cars in the U.S. are expected to fall to 13.5 million in 2000, down from about 15.5 million this year, analysts said. Preparing for the downturn, car sellers are preparing to slice into their profits in order to keep sales going, analysts said.

The typical profit for a manufacturer on the sale of each car is $2,000. And if a dealer offers a $1,000 rebate, that reduces the number in half. But many are willing to do just that to keep the showroom lots from overflowing.

With the upper hand, consumers should be able to drive away with a good deal. "Car buyers know what they're looking for," an analyst said. "And they'll sit back waiting for the proper deal to come along before they make the purchase of their favorite car or truck."

Since World War II, car prices have escalated beyond the rate of inflation. But that has changed recently, and the real price of a car is actually going down. Car prices have stagnated in recent years and are expected to hold below the rate of inflation the foreseeable future.

Moreover, the buying experience itself has changed -- mostly for the better. Certainly, there is more choice. Auto leasing has been a common practice for several years, and a growing inventory of well-maintained leased cars also is an encouraging trend for buyers.

Used-car dealers and superstores have sprouted all over the country, and in many cases buyers can walk away with perks on low-priced models.

Some dealerships offer no-haggle deals, where a price is posted and buyers don't have to haggle over the bottom line, an experience that many people dread. And there is a litany of auto information over the Internet, from specifications to prices.

So auto analysts say these are painful times for the auto industry. But a smart car shopper can translate that into a personal gain.

Related stories:

• Take the pain out of buying your next car - January 2, 1997
• No love lost for fixed prices among car-buyers - July 3, 1996
• Rebates return as car prices soar - January 16, 1996

Related sites:

• Edmund's Automobile Buyer's Guides - Pricing information on new and used vehicles
  • Current manufacturer rebates and incentives
• Addtional "Wheels" links

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