Buying a new car can be a daunting task, but with the right mindset and a few tips, you can get the best deal when you visit your local car dealership.
How do you negotiate the best deal on a new car? In some cases, you won’t need to do more than look for deals and perform a little research. Some dealers and automakers have no-haggle pricing, which makes it easy to understand how much a vehicle should cost. That said, there are still a few things you can do to get the best possible deal.
Check out the special offers
Do you qualify for any special offers? Many new cars come with rebates, incentives, and discounts that can be applied during the purchase. You’ll want to understand the differences between buying and leasing, giving you a huge difference in the monthly payments and some incentive options as well. In addition to the special offers, find out if you qualify for some discounts based on being a recent college graduate or a military veteran. Take advantage of any discounts you can find for your new car.
Get some insurance quotes
Every car and every trim cost different amounts to insure. If you want to lower your insurance costs, you need to consider this as part of finding the best deal on a new car. If you take out a loan for your new car, you’ll be required to have full coverage insurance instead of liability. This can be a huge difference in the cost you pay for insurance. Get some quotes on your insurance before you head to the dealership, ensuring you know how much you’ll need to pay for your car every month.
Secure financing early
If you belong to a credit union, you’ll often find much better financing rates than going through the car dealership. Unless the dealership has special financing that you qualify for with rates that are better than your credit union, go with a pre-approval from your trusted financial institution. This will help you know what vehicle you can buy and work to get the price to fit your loan when you visit the dealership.
Shop at the end
Car salespeople have quotas they need to make before the end of a month or quarter, making these ideal times to go shopping for a car. When you want to get the best deal on your new car, you’ll have a bit more leverage and leeway at the end of the month when a salesperson is trying to make that final sale to meet their quota. Shopping at this time of the month could make it possible for you to actually negotiate the price and have a much lower monthly payment.
Check the sticker
Many car dealers add items to vehicles, and those items are negotiable when you’re shopping for a car. Check the sticker for the added costs and items. If there’s something on there that the dealer has added, you can ask to have the item removed or for it to be rolled into the price for free. You didn’t ask for those dealer-added items, and this gives you a little bit of price negotiating power that you might not feel you have when you visit a no-haggle dealership.
Perform your trade-in separately
If you’re trading your old car in as part of the deal, don’t let the dealership know about this upfront. Instead, lead the conversation in a way that shows you’re undecided about trading the car and make the dealership work to give you the value that you expect. Check the Blue Book value of your vehicle but be realistic regarding condition and care. It’s also a good idea to have your old car detailed before you head to the dealership to give it.
Avoid the add-ons
When you want to get the best deal on a new car, you need to pay attention to the fees that can be added to your monthly payment. It’s not a good idea to finance the registration and licensing fees, and if you can pay out of pocket for other dealership and required fees, you’ll keep them from being part of your loan. This can pay off down the road when you want to trade the vehicle in before the loan term has ended.
Use some of these tips to negotiate the best deal on a new car and avoid paying too much. When you take your time and get the right deal, you’ll pay less and get more out of your car.
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