Are you a “new-car-aholic,” who just has to have a new car every 2 years? Or are you a “drive-it-until-it-dies” kind of car buyer? Whichever you are, eventually you'll have to break down and head to the dealership. There are several ways you can save money when buying a new car.
Plan Ahead
Decide ahead of time what you can really afford. Many new car buyers head over to the dealership on a whim with no intention to buy. Then they get one whiff of that new car smell, buy on impulse and end up paying way too much. Be sure you have done some simple calculations to figure out how much car you can comfortably afford. You know your income and you know your monthly “outgo” so set your budget and stick to it.
Do Your Homework
Make sure you have gathered all the facts needed to make a reasonable comparison of different makes, models and styles. The internet is an excellent resource to shop “virtually” and compare car features, engine sizes and prices before you ever head to the dealership.
Get the Dealer's Invoice price
This tip will require a small investment up front, but will absolutely pay off in the long run. If you know the dealer's cost, you can go into the negotiation properly educated about how much you need to offer initially to avoid sitting in the chair for even one minute longer than you need to.
Wait Till The Last Minute
Shop at the end of the month, quarter, year. Just like any other business, car dealers need to turn over their inventory. When it gets to be the end of a period, not only do they want to move cars off the lot, they want to make their sales quotas to earn their bonuses. This gives you some leverage as a buyer because they really want, and sometimes need to make the sale.
Set Expectations
But set them appropriately, of course. Obviously, car dealers are in business to make money. Your goal is to avoid letting the car dealer make a dime more than is absolutely necessary to strike a deal. This means that you must come to the table with a realistic offer. The goal is to offer a price that meets both parties needs to avoid time spend negotiating. Remember, time is money, so the faster you complete the transaction, the sooner you can drive off in your new car.
