How to Save Hundreds of Dollars on a New Car

How to Save Hundreds of Dollars on a New Car

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Shopping for a new car can be a hassle and many consumers approach the process with dread and with a lack of accurate information. Knowledge is power and when you have a full grasp of the market and prices, saving hundreds, if not thousands of dollars on your purchase is within reach. Here’s how you can save big on your next new car purchase.

Choose the Right Vehicle

Never buy a vehicle based solely on price. There are many different factors that come in when considering a vehicle choice. What you want to do first is identify the type of vehicle you need, i.e., sedan, SUV, truck, coupe, convertible, minivan, etc. Then, identify the vehicle size (segment) such as midsize sedans.

When evaluating vehicles by segment, use websites such as Consumer Reports, Car & Driver, Auto Trends Magazine, and Motor Trend to read reviews. Eliminate models that do not shine in your particular segment. Then, compare prices including by trim level. If there are certain amenities that you want that are typically extra such as navigation, all-wheel drive, special paint, leather seating, and alloy wheels, know that you’ll pay a premium for these services. Look for package deals where bundled adds on are delivered at a reduced cost. Use the manufacturer’s price configurator to compare costs and to budget your vehicle.

Time It Right

Not all days are equal when it comes to buying a car. Nor is every season the same. If you buy on the last few days of the month, chances are you will be able to strike a better deal than at other times of the month. That’s because sales people work on quotas. The more cars sold in a month, the better their commission payment.

You can also find a good deal at the end of a calendar year. As the model year changes, discounts on the previous year’s models are increased as manufacturers want to clear dealer lots and push the new models.

Arrange Your Own Financing

Your dealer is only too happy to arrange financing for you. This can be a trap, a costly one at that, adding hundreds of dollars to your financing costs. Instead of going for the dealer arranged financing, ask that all available rebates be applied to your down payment.

Then shop for a new car loan from your bank or credit union. Credit unions in particular offer the lowest rates, usually matching what your dealer can do. Concentrate on making the best new car deal with dealer and the best financing deal with your banker.

Use the Internet to Teach You

The greatest leveling factor of our time is the Internet. Pricing information for all goods and services is within easy reach including new car prices. Visit multiple sites and compare like models and pricing. If you see something you like, contact the dealer via the Internet to obtain their best price.

You can also let dealers fight for your business. Essentially, you tell a dealer what a competitor is offering to see if they’ll beat that price. The dealer knows how low he can go before agreeing to an offer. You may find it much easier to deal online than in person — make sure that you get that price in writing.

Sell Your Trade-In Separately

It may be tempting to use your trade-in as a bargaining chip, but that can be a big mistake. Your right approach here is to negotiate the best deal on a new car separately and then talk trade-in after the fact.

Indeed, you may want to consider not trading your car in at all. If you sell your car to a private party, you’ll likely net a bigger profit than selling it to a dealer. When bundled as part of one deal, your dealer may inflate the price of your new car to make it appear that you’re getting good money on your trade.

Make Your Decision

With financing in place, your vehicle selected and your deal just about wrapped up, you are now ready to finalize your plans. Review your offer carefully then arrange for your purchase once you are satisfied that the terms are clear to you and something that you can afford. Enjoy your new car and the hundreds of dollars you saved by shopping carefully.

See AlsoBad Credit and Your New Car Lease

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