Coming off several years of depressed sales, car manufacturers are still eager to compete and offer to you some exceptional deals. Even some of the hot-selling models such as the Toyota Camry come with discounts or low-rate financing. If you are planning to buy a new car in the coming weeks or months, then you stand an excellent chance of driving off the dealer lot with a good buy, provided you do your homework first.
1. Shop on your own terms. Many people shop for a new car when they absolutely need a new one. Their old car may have died or they may have suddenly taken on a new job in a location where previously depended on public transportation is not available. For everyone else, a car purchase should be carefully considered and made without external pressures. You are much less likely to agree to a deal if you do not have the pressure of buying a new car hanging over your head.
2. What do you want? Before shopping for a new car, what kind of vehicle do you want? If you are trading your ride in for the latest version of your current vehicle, then the hard work is already done for you. However, if you plan on buying something new or different, there are more than 700 vehicles on the market. Narrow that list down by body style, price range, amenities and brand.
3. Where will you buy it? Heading to your local dealership used to be your only option when it came to purchasing a new car. These days, the Internet has made it possible to shop online and across the country to hunt down the best deal, but so have car buying clubs and even some employers. You may need to pay an annual membership fee to join and you may be charged a search fee to help you locate a vehicle, but you could end up saving hundreds of dollars off the sticker price by using a third-party service.
4. Check invoicing. Information revealing what your dealer pays for new cars, secret rebates from manufacturers, and other sales incentives can help you save money on your purchase. Consumer Reports, Edmunds, and Kelley Blue Book each offer information on dealer invoicing, an invaluable tool to have on hand before you shop for a new car.
5. Consider a leftover. This year's model may be the latest and the greatest, but it may not have the incentives matching a leftover vehicle from the previous model year. But it isn't just 2012 models which are leftovers; in the coming months several 2014 models will hit the market which means that a number of 2013 vehicles will be considered last year's model. Just remember that any older model, even new, has likely lost thousands of dollars in value due to a model year change over. Yes, getting $3,000 taken off from a sticker price may sound wonderful, but if the car has already decreased in value by $5,000 or more, then you are not getting a bargain.
6. Shop separately for a loan. If your dealer offers you a choice between a manufacturer's rebate and a low interest rate auto loan, you are almost always better off taking the rebate and applying it to your purchase. Shop elsewhere for an auto loan, through your credit union or by finding the best deal through your bank. Your rate might be a bit higher than the auto financing company, but the rebate should more than offset the extra cost of financing your new car on your own.
7. Sell your old car privately. Trading in your used car for the new one almost always results in you losing a lot of money. Always negotiate the best deal for your new car first, before even considering your trade in. Once your new car deal has been finalized in writing, then and only then see what the dealer will give you for your old car. Chances are it will fetch significantly less than what you could get selling it on your own, so be prepared to market your old car yourself.
Deal Considerations
The amount of time you put into your new car search should offer correspondingly good with your savings. Explore your options, complete your research and go into the new car deal negotiation ready to stand your ground. Lastly, be prepared to look elsewhere if the dealer's terms are nowhere near what you need.
