Believe it or not, now is a great time to buy a new car

The Virginian-Pilot (MCT) - It's been a cold winter, and I'm not talking about the weather. When it comes to economic activity, the year of the ox so far has proven to be as lively as the beast it's named for. The current climate of fear has many folks paring back their spending.

But that has led retailers, car dealers included, to ratchet up the incentives to buy. So, assuming you're in a solid financial position, is it a good time to buy a new car or truck? Yes. And here's why.

_ Inventories are high: The worst of the economic slowdown hit at a time of year when sales tend to be slow anyway. Couple that with inventories ordered during sunnier economic times and you'll find a good selection of vehicles to choose from. Just don't expect it to last. The economic slowdown has automakers slashing their production capacity. That means that come spring, when sales traditionally pick up, there will be fewer cars to choose from. In addition, with sales slow, don't expect dealers to go overboard ordering cars and trucks to replace the ones they sell.

_ So are incentives: Remember how six months ago people were on waiting lists to buy a Toyota Prius hybrid? Right now, there's a $750 cash rebate to stir interest in the vehicle. Want something cheaper? The Nissan Versa 1.8 hatchback offers a $1,000 back _ not bad for an economy car that starts at $13,100. Want a truck? The Ford F-150, which starts at just more than $21,000, has a $3,000 customer rebate. Or take $1,000 cash back and finance it for three years at zero percent. There's also a $500 military incentive. And that's before discounts or trade-ins. Heck, even luxury cars have incentives. For instance, the Cadillac CTS offers a $3,500 customer spiff. Most import brands offer low-rate financing.

_ Sports cars are a good bet: Look, convertibles don't sell in January. Ditto sports cars. Want one? Buying one now is perfect timing. If you wait until spring, you won't get the deal you'll get right now.

And there's cash on the hood. You can get rebates by financing your purchase through an automaker's financing unit. Consider a new car recommended by Consumer Reports, the 2009 Ford Fusion midsize sedan. It starts at $19,035 and comes with $3,500 cash back. Last weekend, Ford Motor Credit was offering zero percent financing for up to 60 months and $1,000 cash back for doing so. And that is before discounts, down payments and trade-ins.

One last thought: Beyond getting a new ride, buying a new car or truck does something more: it supports the economy, both locally and nationally. It's almost patriotic. Give it a try this weekend. Kick some tires. Run the figures. You'll be surprised.

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© 2009, The Virginian-Pilot (Norfolk, Va.).