We talk about saving money on a lot of things. From groceries to utility bills and everything in between, we spend a lot of time and energy looking for ways to keep more money in our wallets. This line of thinking also extends to buying a new car. Just because the sticker shows a specific price doesn’t mean you must pay that price. If you do a little research and educate yourself on a few key points, you can save quite a bit when you buy a new car. Below, we’ve put together a list of tricks you can use to get a better deal when buying a new car.
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Pay Cash
Paying cash for cars is a good idea for several reasons. For starters, you won’t have to worry about extra interest charges. You’ll just pay the negotiated price for the car. Second, you won’t have to make monthly payments. These monthly payments can sometimes put you in debt, especially if you have a habit of living outside your means. Most importantly, by paying cash, the dealer may be willing to take less for the vehicle because they get to sell the car quickly, with no risk of you defaulting on a loan.
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Shop for a New Car at the Right Time
Many dealerships have sales goals, which means the salespeople have a timeline in which to make sales. Timing your shopping trip just right could land you a better deal. Try to hit the dealerships at the end of the week, near the end of the day, around the end of the month to boost your negotiating position.
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Comparison Shop for a New Car Outside Your Area
Different dealerships in different locations price their vehicles differently. For example, your local dealership might have the car you’re looking for priced at $30,258, while a dealership in the next state over might have it priced at $27,152.
Spending a couple of hundred dollars on travel to save thousands of dollars on a car is smart shopping. And besides, who doesn’t enjoy a road trip?
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Get Pre-Approved for a Loan Before Heading to the Dealership
One of the ways dealerships make money is by charging a fee for providing finance when you buy a car. You are not obligated to obtain financing through the dealership, though, and by obtaining your own financing with your own lender, you can save yourself a lot of money.
Before heading to the dealership to look at cars, get pre-approved by an outside lender, and have the approval letter in hand. Keep in mind that some dealers offer special financing rates at the end of the month. This is only a good idea if they offer zero-percent financing. Otherwise, stick with your own lender.
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Don’t Fall for the Add-ons
While you may have gotten the upper hand in the negotiating process, falling for the multitude of add-ons the dealership offers will undo your great deal. For example, that fabric protectant they push might only cost an extra $12 a month, but over the life of a 72-month loan, that adds up to an $864 rip-off. Other add-ons you should avoid include rustproofing and the mostly useless extended warranties.
When it comes to saving money at a car dealership, you have a lot of tricks up your sleeve if you educate yourself first. Use the tips above to get a great deal when buying a new car.
