While buying a brand new car a question comes to mind: How to get the best deal on a new car? Finding the right deal when buying a new car takes time, research, and great negotiation.
First, do your homework on the type of car you are considering as well as the average cost so you know your budget.
Then, navigate buying a car at the end of the month or during holiday sales, as car dealers are more willing to negotiate.
Finally, if you have a trade in, figure out how much it is worth and have your financing options prepared before meeting the salesperson, as that will give you a huge bargaining advantage.
Article Summary
How To Get The Best Deal On A New Car
Whether you are buying a new car or a used one, the experience can be pretty exciting, but if you want to get the best deal, buying a car goes beyond choosing your favorite model and color. You have to devise a strategy, negotiate smartly, and learn a few things about the buying process.
Therefore, if you are also prepared to buy a car and want to know the tricks to get the best deals, then you are at the right place to read and get to know all about it, like how the price is formed and what steps are done to finalize the deal.
Go on reading.
1. Know Your Needs and Do Your Research
Know the car you want, before visiting a dealership, understand what you need. Do you need a family car with plenty of space or a fuel efficient car for long commutes?
Narrow your focus to finding a vehicle that meets your needs rather than one that will impress passersby.
Then, you must do your research. Go to the Edmunds, Kelley Blue Book, and Consumer Reports type of websites to find which models match your requirements.
Gather information on manufacturers, present prices, reliability, performance, and safety of each of them or a few models. Then, draw up a shortlist of several cars that look like they deliver what you want.
2. Understand the Pricing
Every car you’ll see has a sticker price, otherwise known as the Manufacturer’s Suggested Retail Price (MSRP). But the most important specific price to you is the invoice price, the dealer’s buy price from the manufacturer.
Because it’s a sticker, the price might be lower than the MSRP and can provide you with a starting point. Sites such as TrueCar and Edmunds have invoice prices.
3. Get Pre-approved for Financing
With the combination of good or excellent credit, have a copy of the loan pre-approval from your bank or credit union before heading to the dealer.
This helps you know the loan, interest rate, and duration levels your credit history allows for the car purchase.
First, it gives you negotiating power since you won’t be tied to the dealer’s financing (which could be more expensive). Second, it gives you a budget, one you stick to.
4. Shop Around
I would never go to one [car dealership]. I advise people to shop around for a car. Not only is it cheaper, but you get to know what’s out there.
For example, there are car owners who recommend Honda dealer as reliable ones where they not only find secure/personalized financing but also receive free delivery service.
Sometimes, dealers will match competitors’ dealer prices, so having quotes from a couple of dealers could work in your favor.
5. Time Your Purchase
A bit of strategic timing can really help you get a good deal on your car. Salespeople have quotas, usually on a monthly and quarterly basis, that they need to make.
Head to the showroom at the end of the month, or especially at the end of the fiscal quarter, and you’ll see salespeople more desperate to cut a deal.
Be on the lookout for model year end sales deals when dealers want to unload outgoing models to make space for the new models. That’s often when you can score the best bargains.
6. Negotiate Terms, Not Just Price
When it comes time to negotiate, pay attention to the total cost of the vehicle, not just the monthly payment.
A lower monthly payment is not always what it seems, as sometimes it just means you’re going to spread the payments over a longer term. Be clear about the interest rates as well as the terms of the loan and other fees involved in your car purchase.
7. Look for Rebates and Incentives
Manufacturers are often giving rebates, discounts, or special financing rates, among other promotions, to move a particular model.
When you’re shopping, it’s a good idea to look at their website for any incentives that they might be offering.
These are dealer cash, customer cash, and special lease incentives that can lower the cost of your new vehicle.
8. Be Ready To Walk Away
Never be strong armed into buying. If the deals aren’t working for you or the deal just doesn’t feel right, walk away.
Not only is this a way to avoid getting a raw deal, but it can also be a powerful negotiating tactic to provide an incentive for dealers to offer terms to secure the sale.
9. Review the Contract Carefully
After haggling over a price with which you’re satisfied, make sure that you read the contract through before signing.
Make sure that there are no unexpectedly high expenses or unspecified ‘extraneous’ costs that are added on the right at the end and were not part of the agreed-upon negotiations.
The Bottom Line
You don’t need to be an insider among car salesmen or a poker or professional negotiator to get a great deal on a new car with a little research and a willingness to negotiate.
Use these tips, and you will both be able to walk away with your heads held high and knowing that you got not only the right car but it. Good luck driving!
