Expert Strategies for Smart Buyers

To get a better deal on a car, whether new or used, you can follow these strategies to maximize your savings and avoid common pitfalls:

1. Do Your Research

• Understand the Market Value: Use online tools like Kelley Blue Book, Edmunds, or TrueCar to determine the fair market value of the car you want. This gives you a solid starting point for negotiations.
• Know the Invoice Price: For new cars, find out the dealer’s invoice price, which is typically lower than the MSRP (Manufacturer’s Suggested Retail Price). Websites like Edmunds or TrueCar can help with this.

2. Shop Around

• Contact Multiple Dealers: Get quotes from several dealerships. Let them know you’re comparing offers, which can motivate them to give you their best price upfront.
• Consider Online Dealers: Websites like Carvana, Vroom, or local dealer websites often offer competitive pricing, and you can use these prices as leverage when negotiating with a physical dealership.

3. Time Your Purchase

• End of the Month or Year: Dealers often have sales quotas to meet, making them more willing to negotiate at the end of the month or year.
• Buy During Holiday Sales: Major holidays like Memorial Day, Fourth of July, or Black Friday often feature promotions that can save you money.
• Shop Off-Season: Consider buying a car when demand is lower, such as in the winter for convertibles or summer for SUVs.

4. Be Ready to Negotiate

• Start Low: Begin your negotiations slightly below the market value or invoice price. This gives you room to move up while still staying within your budget.
• Focus on the Total Price: Don’t let the dealer focus solely on the monthly payment. Negotiate the total price of the car, including taxes, fees, and any extras.
• Ask for Extras: If the dealer won’t budge on price, ask for extras like free maintenance, extended warranties, or additional accessories.
• Be Willing to Walk Away: If the deal doesn’t meet your expectations, be prepared to walk away. Sometimes, this is the best way to get the dealer to improve their offer.

5. Leverage Trade-Ins and Financing

• Separate Negotiations: Don’t discuss your trade-in or financing terms until you’ve settled on the purchase price. This prevents the dealer from using these factors to offset your savings.
• Get Pre-Approved Financing: Secure a pre-approved loan from your bank or credit union before visiting the dealership. This gives you a benchmark to compare the dealer’s financing offer.
• Consider Dealer Financing: Sometimes, dealerships offer low-interest financing that might be better than your pre-approved loan, but compare the total cost of the loan, not just the interest rate.

6. Look for Incentives and Rebates

• Manufacturer Incentives: Check for current rebates, incentives, or loyalty programs offered by the manufacturer. These can significantly reduce your final price.
• Dealer Incentives: Some dealers offer their own discounts or bonuses. Be sure to ask about these and see if you qualify.

7. Avoid Unnecessary Add-Ons

• Skip Dealer Add-Ons: Dealers often try to sell add-ons like rustproofing, paint protection, or extended warranties. Most of these are unnecessary and can be purchased cheaper elsewhere if needed.
• Review the Contract: Before signing, carefully review the contract for any hidden fees or add-ons that you didn’t agree to. Don’t hesitate to ask for explanations or to have them removed.

8. Be Patient and Persistent

• Don’t Rush: Take your time to find the best deal. Don’t let the dealer pressure you into making a quick decision.
• Follow Up: If a dealer won’t meet your price, give it a few days and follow up. They may reconsider if they still have the car on the lot.

9. Consider Certified Pre-Owned

• CPO Vehicles: Certified Pre-Owned (CPO) vehicles offer many of the benefits of a new car (like warranties and inspections) at a lower price. They can be a good middle ground if you’re looking to save money but want some assurance of quality.

10. Use a Car Buying Service

• Consider Services: If negotiating isn’t your strength, consider using a car buying service that can negotiate on your behalf or offer pre-negotiated prices.

By following these steps, you can increase your chances of getting a great deal on your next car. Remember, the key is preparation, patience, and a willingness to negotiate.