Wheels and deals for the graduate
In a season of incentives, this is one market segment that hasn't slowed down
By Dana Hunsinger
Every grad dreams of the ultimate gift: a new car.
These days, thanks to the sluggish economy, many are in luck.
Advertisement
With deals abounding on car lots -- including buy-one-get-one-free at the Hyundai dealer, Dodge employee pricing, cash rebates, zero-percent financing and no down payments -- if the kid has to have a car, now may be the time for parents to buy.
"This is as good as it gets," said Merle Bettenhausen, advertising manager with Ray Skillman Auto Centers, which has five locations. "It's as good as it's ever been."
The time was right for Mike McCall, whose daughter Madison received a new Jeep Liberty after graduating from Ball State University. With all the deals combined, McCall estimates he saved $8,000 to $9,000.
"It was very fortuitous that the timing fell when it did," said Mike McCall, Carmel.
Madison McCall is ecstatic over her new wheels.
"I've been looking forward to it for a very long time," said the business major.
Not all grads, of course, are lucky enough to get the dream gift. But in the middle of a recession, just when you would expect car buying for graduation to be down, some dealers say it is picking up.
Even at lots where sales have not risen, people purchasing cars for grads have helped the bottom line.
"I wouldn't say there has been a big increase, but there certainly has not been a decrease," said Rick Haeick, Internet sales manager at Champion Chrysler Jeep Dodge on West 96th Street.
Perhaps even more popular than a new car for the grad is the purchase of a used car or taking over a lease.
LeaseTrader.com saw a 16 percent increase in March and April for its lease takeover program, compared with the same months a year ago. One of the major reasons customers indicated they were leasing was for a graduation gift, said John Sternal, a vice president at LeaseTrader.
"Not every dealer offers big incentives with no down payments, plus you have to qualify for them," said Sternal.
At LeaseTrader, a buyer who wants no down payment and a short-term lease takes over the car from a person who needs to get out of the contract.
"You are able to get a car still in very good condition under warranty with no down payment," Sternal said.
The most popular car this graduation season has been the Mini Cooper. But Honda Civic and Toyota Camry ranked at the top of Forbes .com's list for best cars for college grads.
Jane Smeltz, who lives on the Westside, has been searching on the Internet and at used car lots to buy a Civic for her son, who will graduate from high school in a few weeks. She has held off because "every time I turn around, it seems like a better deal is being thrown out there."
"At some point I'm just going to have to take the plunge," she said. "I don't want the deals to dry up before I buy it."
This story posted by LeaseTrader.com, the automotive service company that lets people transfer out of their Car Leases early. If you're looking to swap a lease or transfer out of your car lease, please visit www.leasetrader.com