Are you thinking about how to get a good deal on a new car this year? If that’s the case, we’re here to help you out!
A car purchase is a huge financial decision which is why doing your due diligence is critical. The process of getting a new car can be daunting, but if you arm yourself with the right information, you’ll be in good shape to get the best deal possible.
Buying a new car goes beyond the out-the-door price. It’s important to consider the whole cost of ownership when making your decision. To get the best deal, you need to consider things like fuel costs, insurance rates, maintenance, and repairs.
So, if you’re ready, here are some tips on how you can get a good deal on a new car:
Do your research
Research allows you to get the best deal when shopping for a new car. Without it, you’re at the mercy of car dealerships. When you take the time to research, you learn about a car’s features, what other customers think of it, and what kind of deals are out there. This puts you in the driver’s seat when negotiating with dealers.
Kelley Blue Book is usually the best way to start your research. You can find out the fair market value of the car you’re interested in and use that number as leverage when negotiating with dealers.
Know your credit score
Most car shoppers don’t know their credit score which can put them at a disadvantage when it comes time to finance. It’s important to know your credit score so that you can get an idea of the interest rates you’ll be qualified for. The lower your credit score, the higher the interest rate will be.
You can also visit multiple credit unions to know their auto loan rates. Once you have this information, you can go to the dealership armed with the knowledge of what you should be paying.
When doing your research, it’s important to factor in important factors like out-the-door price, car loan, sales tax, sales price, monthly payment, delivery fees, total cost, etc.
Get pre-approved for financing
Your credit score is one factor that determines if you’re pre-approved for a financing deal. The other is your income. Before heading to the dealership, get pre-approved for an auto loan. This way, you’ll know exactly how much you can afford to spend on a car.
Pay Cash
If you have the cash to pay for a car outright, do it. This is the best way to avoid interest charges and get the best deal possible. A cash buyer is a valuable customer to a dealership so they’ll be more likely to give you a great deal.
Likewise paying in cash lets you pay the sticker price along and avoid interest rate charges which can add up over time. In addition, a monthly payment can entice you to spend more than you originally planned.
Keep your trade-in
If you’re planning on trading in your old car, keep it to yourself. You don’t want to give the dealership any leverage when negotiating the price of your new car. Once you’ve agreed on a price for the new car, then you can mention your trade-in.
But make sure you know the trade-in value of your car before negotiating. You can research this online or look it up in the Kelley Blue Book.
Don’t get persuaded to buy any extra features
A car dealer will often try to sell you on all sorts of extra features for your car. Stick to your guns and only buy what you need. You don’t want to end up paying for something that you’ll never use.
Extra features examples are things like extended warranties, paint protection, or gap insurance.
Haggle
Don’t be afraid to haggle with the dealership. They expect it and are ready to negotiate. If you don’t haggle, you’re likely paying too much for your new car purchase.
The negotiation process doesn’t only involve invoice prices and monthly payments. You can also negotiate for things like a lower interest rate, more manufacturer’s rebates, or even freebies like floor mats or a tank of gas.
You can ask the sales manager if they’re willing to throw anything else in to sweeten the deal.
Be prepared to walk away
If you’re not getting the deal you want, be prepared to walk away. This is the most important tip when it comes to negotiating for a new car. If you don’t feel like you’re getting a good deal, walk away.
The dealership will often try too hard to keep your business so they may come back with a better offer. If not, you can always go to another dealership.
Don’t fall for high-pressure sales tactics
Car dealerships are notorious for using high-pressure sales tactics. They’ll try to rush you into deciding before you’re ready. Don’t fall for it! Take your time and don’t sign any paperwork until you’re sure you’ve got the best deal possible.
Ask for a test drive
You should always take a car for a test drive before making a purchase. This will give you a chance to get a feel for the car and make sure it’s the right one for you. If you ask a former car salesperson, they’ll tell you that the test drive is when they make the sale.
This isn’t the case anymore as people are doing their research online before ever stepping foot into a dealership. Car dealers know this and will try to make the test drive as short as possible.
Don’t be afraid to ask for a longer test drive. If they say no, it’s a red flag that you should move on to another dealership.
Get multiple quotes from multiple dealerships
Don’t just go to one dealership when shopping for a new car. Get quotes from multiple dealers to ensure you’re getting the best deal possible. This may seem like a lot of work but it’s worth it when you snag a great deal on your new car.
Often, dealerships have varying prices on the exact same car. For this reason, don’t expect the car dealership that you first visited to give you their best price right away.
This also goes with the invoice price of the car. The invoice price is what the dealership paid for the car from the manufacturer. Many dealerships will try to charge you more than this.
You can find the invoice prices of cars online so you know how much you should be paying.
Payment methods
When it comes to paying for your new car, you have a few options. You can pay cash, get a loan from a bank or credit union, or finance through the dealership.
If you’re going to finance through the dealership, be aware that they will try to make money off of you with things like extended warranties, gap insurance, and other extra features.
If you’re paying cash, be sure to get a receipt and have them sign over the title to you. Paying in cash lets you pay for the purchase price of the car and nothing more.
If you’re getting a loan from a bank or credit union, be sure to shop around for the best interest rate. You don’t want to overpay on your car loan just because you didn’t compare rates.
Read the fine print
Once you’ve agreed on a price, it’s time to read the fine print. The salesperson will try to rush you through this step but you must take the time to understand all of the terms and conditions.
In particular, an auto loan will have a lot of fine print that you need to understand. If you don’t, you could end up paying more than you originally agreed to.
Avoid making any quick deal with local dealers
When you find a good deal from the dealership, it is important not to make any quick decisions. You should always take your time to think about the deal and see if there are any other offers available.
You can also ask for a better deal from the dealer before making your final decision. Oftentimes, you’ll find an incredible deal on a car somewhere close to home.
Don’t let emotions get in the way
It can be easy to get caught up in the excitement of buying a new car. But it’s important to keep your emotions in check. This will help you avoid making any impulsive decisions that you may regret later on.
Take your time when making such a big purchase and be sure to do your research. This way, you can be confident that you’re getting the best car deal possible. Similarly, a car price that’s too good to be true probably is.
Ask a finance manager for the best deal
One of the best ways to get a great deal on a new car is to ask the finance manager. They usually have more flexibility when it comes to negotiating the price of a car.
If you’re not comfortable negotiating with a salesperson, ask to speak to the finance manager. They may be able to offer you a better deal.
Ask for other fees
When buying a new vehicle, you need to consider other things like sales tax, registration, and insurance. These things can add a significant amount to the final price of the car.
Be sure to ask about all of the fees involved so there are no surprises later on. This way, you can accurately compare different price quotes to get the best deal possible.
Consider the fuel economy
When buying a new car, one of the things you should consider is fuel consumption. With gas prices always fluctuating, it’s important to choose a car that won’t break the bank when it comes to filling up.
Take the time to research different cars and compare their fuel economy. This way, you can be sure you can save money in the long run.
Consider leasing
Buying a new car has many benefits but it’s not always the best option for everyone. If you’re not sure you can commit to a long-term loan, consider leasing a car instead.
Leasing can be a great way to get a new car every few years without having to worry about selling your old one. The monthly payment on a car lease is often cheaper than taking out an auto loan.
Transact with a reputable car dealership
When looking for a great deal on a new car, it’s important to find a reputable dealership. There are many unscrupulous dealers out there that will try to take advantage of you.
Make sure you avoid any car dealer tricks when car shopping. The auto industry is full of dishonest people but there are still many reputable dealerships to transact with.
You can also ask for a fair price quote from the dealership. If they’re not willing to give you a reasonable price, move on to another dealer. You can also consider a private seller but make sure you do your research first.
In addition, the car’s price depends on the sales goal of the dealership for that month. Try to be aware of these targets to get a sense of how negotiable the dealership may be.
Look for Manufacturer’s Rebates
One way to get a great deal on a new car is to look for manufacturer’s rebates. These rebates can save you a lot of money on your purchase.
Often, these rebates are offered to encourage people to buy a certain model of car. So if you’re considering a particular make and model, be sure to ask about any rebates that may be available.
Check for dealer incentive
Dealers often offer incentives to buyers to get them to purchase a car from their dealership. These incentives can lower prices significantly.
When you’re car shopping, be sure to ask about any dealer incentives that may be available. You could potentially save a lot of money by taking advantage of these offers.
In Conclusion
These are just a few tips to help you get a great deal on a new car. By following these tips, you can be sure you’re getting the best possible price on your new car.
So don’t settle for the first offer you receive. Be sure to do your research and negotiate for the best possible price. Your car buying experience depends on comparison shopping and haggling to get the lowest price.
In addition, car leasing can be a great alternative if you want to drive new and used cars without a long-term financial commitment.
Whatever route you decide to take, be sure to keep these tips in mind to get the best deal possible on your next car purchase. Thanks for reading.
If you’re not ready to with the cost of owning a car, we can help you with car leasing. It’s your best alternative without a long-term financial commitment.
For more information, please contact us. We would be happy to assist you further.
