10 Ways to Save BIG When Buying a New Car

10 Ways to Save BIG When Buying a New Car

At some point in your life you will need to buy upgrade your car. At this time you will have to decide if you want to buy a new or used car.

In this article I talk about the pros and cons buying new vs used.

In this article I am going to discuss the ways in which you can pay less for a new car.

The sticker price of a new car does NOT mean the price you have to pay. There are always ways to lower the price.

Here are 10 Ways to Save BIG When Buying a New Car.

Do your research.

Researching anything you plan on purchasing is a good idea. Chances are multiple companies are selling the same product and they are NOT all priced the same.

Not only should you check out every close by dealers price, you should also research the going MSRP of the vehicle.

Check out Kelley Blue Book and Edmunds for the average market rate for the car and options you desire.

Knowing the going rate of the car you are looking to purchase will help in the negotiating process.

Time your purchase correctly.

Car salespeople, like most salespeople, have a monthly quota to hit. Therefore, the end of the month can be the best time to buy.

If they are trying to hit their quota they are more likely to give you a better price so they can sell the car.

Also be aware of seasonal trends that impact your area. In the winter a four wheel drive truck could be more expensive than it is in July. People get sick and tired of getting stuck in the snow so the demand for trucks goes up.

When demand goes up so does the price. Do you research and time your purchase right. This could save you a bundle on your new car.

Always negotiate.

This one is a must. The sticker price on the car is a very high end starting point. You should never ever ever pay that amount.

It is quite common to be able to get at least 10% knocked off of that price.

After you have done your research you will see that the market price tends to be well below the sticker price. Use this to your advantage when you are negotiating for your new car.

You wouldn’t want to pay full price on something when everyone else is getting a deal, right? Negotiating is a must.

When I bought my car the sticker price was $46,000. I paid $38,000 for it. It was a brand new car of the next model year.

Negotiate. Negotiate. Negotiate.

Fees are negotiable as well.

Once you negotiate the price of your car the next step is to start the paperwork. Paperwork is a semi-painful process. There are about 50 forms you have to sign.

As you are filling these out you will find out about the dealer fee, the transportation fee, the this and that fee. All of these can be negotiated as well.

There is no reason to pay a $900 dealer fee. What does that even mean??

Don’t shop on weeknights or weekends.

The law of supply and demand doesn’t always work the same way for car dealers. When a dealer is busy and you don’t buy the odds the next guy will are high.

Dealers know this so they are less likely to give you as good a price when you are negotiating.

Try hitting the dealership on a Tuesday afternoon or a Wednesday evening. When there is no one in the showroom they aren’t selling any cars.

They will be more likely to cut you a better deal since there is no one in line behind you trying to get the same one.

If you are paying cash keep this to yourself until you have negotiated your final price.

Car dealerships make a lot of money off of the financing on a new car. Just think, 5% interest for 60 months on a $30,000 car is almost $4,000 in interest that they earn.

When they earn $4,000 in interest they are more likely to give you a better deal on the car because they know they will recoup it on the interest.

If you keep the fact that you are paying in cash to the end then they are more likely to give you this deal because they think you will be financing. Most people do finance so they assume all people do.

They aren’t going to go back on their offer once they find out you are paying cash. This would chase most people away. Who wants to do business with a salesperson like that?

Use the fact that you are paying in cash to your advantage in order to save a bunch when buying a new car.

Wait to discuss your trade-in.

Don’t discuss the plans you have for your current car until after the deal is done.

Many times the salesperson will shift focus to the trade-in to take your concentration off of the new car. They will rave about the awesome deal they are giving you on your trade-in to hide the not so hot deal they are giving you on the new car.

Keep your cards close to your chest until the dealing is done.

Don’t take the car home for the night.

Taking a car home for the night does a couple of things.

  1. It shows the salesperson you are very interested.
  2. It makes you really want the car.

Taking the car home will get you emotionally attached to the vehicle. Dealers know this that is why they offer this! They know you are much less likely to decline their counter offer when you are already attached to the car.

Don’t fall for this common trap.

Be prepared to walk away.

In order to get the best deal possible you need to be prepared to walk away. Walking away shows the salesperson that you don’t really need a car that bad so if they don’t cut you a deal you’ll say no thanks.

This is the tactic I used when I got such a great deal on my car. I went into the dealer, test drove a couple models, and started to negotiate on the one I wanted. After about an hour they still couldn’t get anywhere near my number.

I stood up and said thanks but not thanks and walked out the door.

The next night the salesman called me on my cell phone and offered the exact number I had wanted. He realized that if he was going to sell me a car then he had better sharpen his pencil.

Worry about deals and incentives after you have negotiated the price you are willing to pay.

This is the same as not discussing your plans with your current car. If you talk incentives upfront the salesperson will concentrate on those.

They will draw your attention away from the price to the great incentives.

Also, they will try and tell you that they cannot deal on a car that has incentives. Wrong! You most certainly can and should.

 

Have you bought a new car recently? What did you do to get the best deal you could?

-Alex

 

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