Most Americans understand the profound value of the stock market, and the way that the stock market’s fluctuation can affect the buying and selling practices of the American population. With the recent change in the United States credit rating and the decline of the stock market, many Americans may be hesitating before trying to sell or purchase a new car. chief economist, Dr. Lacy Plache, reasons that the stock market and the market for car buyers and sellers are connected, but in a more positive way than one may expect.

The question most people ask first is about financing. When buying or selling a car, financing is an important factor to consider. In many cases, financing comes in the form of loans. According to Dr. Plache, lenders will continue to give loans to individuals who are credit-worthy. Additionally, because this financing is so important for people that are in the car-buying market, the automotive industry is behind the initiative to keep financing options steady and readily available.

Another common question is whether the price of cars will rise. Analysts don’t think so, simply because the best way to move inventory is a competitive market. Dealers want to get rid of their 2011 inventory to bring in the 2012 models, and the only way to do that is with competitive pricing and financing options. Another consideration is that many car dealerships are looking to make up sales lost when they were low on inventory after the earthquake in Japan.

Even with this information in mind, there are some tips on things to keep in mind when car shopping in any economy:

Comparison Shop.

There’s nothing wrong with visiting (and negotiating) with multiple dealerships. Make sure you are getting the best deal for both your trade-in and your new car purchase.

Be Finance Smart

Use financing if necessary but make sure you’re comfortable with the payments and rates. There are a lot of options out there, and it’s always best to make sure you stay within your comfort zone. If you can’t afford something, look for a different option.

Shop for Incentives and Rebates

Use incentives and rebates to your advantage. Find out what is being offered and what the best combination of those options is for you personally. If you have questions, be sure to ask! Many of these transactions will have years worth of payments, so it’s always better to be informed.

Think Twice Before Trading In

Don’t trade-in your car at the dealership without considering other options. Oftentimes, trading in your car at the dealership will allow the real value of your car to be diminished or even lost.Selling your car to a service like allows you to get the best price for your vehicle without the hassle of salesmen.

In the current state of the economy, it seems to be a co-operative market for both buyers and sellers. Each has their own goals in mind and each is dealing with the stock market fluctuations. These are our predictions and tips, but we want to know yours.

What tips do you have about the buying and selling cars in this economy? Any tips we left off? You can find us on facebook, twitter and Google+.

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