Are you looking to get rid of your old jalopy and drive home in a shiny new car? Buying a new car is one of the most expensive purchases a person will make (besides a home!). Depending on the make and model, you can find yourself dishing out tens of thousands of dollars on a new ride. Therefore, it’s important to do your research and take the time to find the perfect car with the most appealing price tag. If you’re ready to head over to a dealership and put down a down payment, consider these four money-saving tips first!
Pay in cash
If you choose to finance a car, be prepared to pay hefty interest rates. Financing a car means you take out a car loan, and all loans come with interest rates. If you do need to finance, work with a dealership that will offer you the lowest APR. However, if it’s possible, try your best to pay in cash. Doing so will save you thousands of dollars on interest rates and many dealerships will offer cash discounts as well!
And because new cars depreciate so quickly, searching for a used car that is in good shape will save you even more money. There are plenty of used car dealerships that have a wide selection of used or certified pre-owned vehicles that run like they’re brand new. This way, you can use that saved money and put it towards that beach holiday you’ve always dreamed of or towards a fancy dinner!
Many people avoid going to the dealership because they’re afraid of one thing—negotiating. We know, it’s intimidating, uncomfortable, and difficult to do. But, if you come prepared with a solid plan, you could score a great deal. To negotiate a fair price for a new car, put your game face on and follow these tips:
- Information: Stock your arsenal with as much information as you can find on the car you want. Doing so will show the dealer you took time to compare prices and know how much the car is worth.
- Timing: Like most businesses, car dealerships have monthly, quarterly, and annual goals they need to meet. Find a dealership that hasn’t met their sales goals yet and you can be the lucky buyer they need to make the bonus.
- Distractions: Stay focused on the total price of the car. Often, dealers will divert your attention to monthly payments and other costs to keep you from thinking about the total price. Let the dealer know you have a pre-approved financing plan so they don’t distract you from what matters most—total cost.
- Walk Away: This is one of the most powerful tools you have. The last thing a dealer wants is to lose a sale from a customer walking away. If you’re not satisfied with the price they’re giving you, politely let them know you’ll look elsewhere and give them your contact information in case they decide to lower the price.
So, if you find yourself staring at an inventory of new Audis or searching for a shiny new pickup truck, be prepared to negotiate. There’s nothing better than getting a good deal on a new car. Take time to put on your best poker face to show you’re not bluffing, and you’ll drive home in the car of your dreams!
Trade in your old car
If your old car has taken you on long drives and racked up high mileage, consider the trade-in options offered by the dealership. Dealers may buy your old car and put that money towards the cost of your new car. However, it’s important to know your car’s worth to ensure you receive a fair price. It’s also worth noting that bringing up trade-ins after you negotiate the price won’t allow the dealer to use it as leverage.
To save money on a new car, always compare prices between different dealerships. When you have a car in mind that you want to purchase, sit down and research all of the dealerships in your area. Look at cost, financing options, and any current deals. Or, call each dealership and speak with a consultant to find out more information on their prices. You can also use car comparison services that provide reviews, information, and prices at dealerships near you. Today, consumers have access to endless information, which gives them the upper hand when it comes to negotiating a price and getting the best deal.
The Bottom Line
Buying a new car is a long and expensive process. However, with these tips and tricks, you’ll be able to drive home as a happy customer. From spending weeks doing research to putting on your negotiating hat, there are countless ways to save hundreds (or thousands!) of dollars on your new car purchase. With all that saved money, you can have a new car and take that vacation you’ve always wanted. Good luck!