Driving down IH-35 yesterday an amazing revelation hit me. As I drove past the local Chevrolet dealership, I saw a vehicle with a sticker on its windsheild that said "$7,800 off". Amazingly, it was just one of the many discount stickers covering the windshields of new Chevrolet models dotting the highway. Vehicle after vehicle, car dealer after car dealer, I saw the prices falling.

Are you thinking of buying used? You might be wiser to think new. Our recent, tumultuous economy combined with an increasing necessity for vehicle manufacturers to drive up their sales numbers has created an exceptional prospect for new car buyers. A current study by Edmunds.com shows you may now be able to buy a new car for less than a same model used car.

Auto lenders have been constraining their lending requirements over the past 18 months because of the fitful economy, which has caused a great deal of car shoppers to enter the used car market. Common sense says when there is a rise in demand, there will normally be a rise in prices. As a matter of fact, the average 3-year-old used car's price has gone up 11.5 percent from last year. All the while, in the midst of increasing used car values, new car makers are chopping prices.

I decided to read into this situation further and found some interesting facts. The Edmunds.com study shows there are now 41 new automobile models that cost less than their used counterparts, when you contrast them to a one year old model, put zero down, and finance the deal for 5 years. There are also a total of 93 vehicles revealed in the same study that cost the same whether you purchase a new or used one. So, how does this affect you? Do your homework. You should be able to find some very good new car deals in this market.

Detroit released numbers that show U.S. car sales stalling. Sales of most manufacturers were higher this June compared to last year, but they are lower than March, April, and May. Toyota reported June sales were down 14 percent from May, GM reported a decrease of 13 percent, and Ford's sales dropped 11 percent.

Recent statements from both car makers and analysts show concern that the recovery of the new car market may be pressing the brake pedal. Vehicle manufacturers are moving forward with concern and question as the economy continues to hickup, credit continues to show restraint, and buyers continue to show fear. Who knows what tomorrow may bring? So, it is probable that auto makers will continue to peel back prices at the showroom.

An article by Gregory Karp in the Chicago Tribune quotes Paul Taylor, chief economist of the National Automobile Dealers Association saying the gap between new and used cars, which has been narrowing for about 18 months, will keep converging for "at least another year". Therefore, if you are worried about tomorrow's economy, or your own future finances, and you are thinking a used car is right for you, think again. Buying a new car could be smarter than buying used.