Is the economy actually improving. Here’s a news flash – new car sales are growing!

The news is particularly good from the Big Three as they reported excellent sales figures for November. They are partly helped by the fact that problems in Japan and Thailand have hurt the Japanese automakers.

But the more important factor is that the economy in the US is improving and that’s having an impact on car sales. It’s also important to note that the tighter supply of used cars in this country and other countries as well. That said, car sales are not doing well in the UK or Europe. They’re having their own problems.

But here in the US, car sales plunged for several years. With fewer new cars purchased in beginning in the fall of 2008, through 2009 and into 2010, that affects the number of used cars available now. The result is a somewhat altered car market as used cars are going for higher prices. But that also makes it easier to trade in your used car, and that then accelerates new car purchases.

But the key regardless of where you are is to do some research before visiting car dealers. The more you know about the market and the prices for comparable cars, the better you will do with your negotiations. This applies to new and used cars. Even details like whether a car needs to tires can be important. Now if you’re set on buying something like a used Seat Leon car, or maybe a 70s Corvette, then of course your negotiation posture will be different. Remember, flexibility gives you power when negotiating price.