27 Feb, 2008
PITTSFIELD, MA -- "Sometimes people would rather get their wisdom teeth pulled out without novacaine than come buy an automobile," said Johnson Nissan Sales Manager Steven Pinto.

That's one reason why President's Day typically marks the start of the biggest car sales season of the year. But if you've ever wondered why the dealerships choose now as the time to make a deal that numbs the pain a little, look no further than your tax return.

"People with earned income credits have had really substantial refunds and so (they) may well be deciding that it's time to replace the car that's hit the skids and it's time to do something about it," said H&R Block Office Coordinator Liz Trabulsi.

That's why auto dealers offer rebates, low interest rates, and even cash back incentives now. They want your tax return before it hits your wallet.

"I think it's the rebates and you're coming into when you're getting your tax money back. And it's also a couple months before springtime, summertime. This really is toward the end of winter, when you typically get a better deal," said Berkshire Mazda Sales Manager Ken Mulstay.

But if you're looking to grab a great deal and drive off in a new car, you might not qualify for a low interest rate. And if you have to consider a subprime auto loan, that certainly will not sweeten your deal.

"Subprime loans are for people who do have some credit issues, where their interest rates will probably be anywhere from ten to fifteen percent. Obviously that takes your payment drastically higher than you'd probably want it," said Pinto.

Other auto experts say that percentage could be as high as twenty to thirty percent. But no matter how high the numbers are, they say people will still go though with the deal.

"We deal with it. The question is, does the customer want to swallow it," said Pinto.

President's week or not, it may take a little novacaine to seal that deal.

Sources:-http://capitalnews9.com/content/headlines/110782/
auto-industry-wants-to-seal-the-deal-on-president-s-day/Default.aspx