6 Ways to Maximize Your Savings on a New Car

Know Your Budget

Take some time to determine how much you can comfortably spend on your next car. Calculate the overall price (not the monthly payment) that you can afford prior to going to the dealership. Keep this information close to the vest, and use it to your advantage throughout the negotiating process.

Use your budget as a guide and focus on negotiating the total purchase price while paying close attention to rising interest rates and loan terms as your monthly payment lowers.

Shop Around

The real secret to maximizing your saving when buying a new car can be summed up in two words: Shop Around! The golden rule that you need to follow is to get pricing from at least 7 different dealers – using Internet sales departments to obtain as many quotes as possible.

Most dealers will offer you deeply discounted prices with zero negotiation as long as (1) they know you’re getting prices from the competition, and (2) you come with other dealership offers in hand, whether online or in writing. The more dealers you collect prices from, the better your chances of landing an incredible deal.

Let the Dealer Earn Your Business

The internet has become an extremely valuable tool to turn towards when researching and eventually purchasing a new vehicle. Many auto dealerships even offer exclusive discounts and savings through their online sales departments.

Automated price bid websites – such as True Car and Edmunds – work to reverse the purchasing process as competing dealers pitch their lowest purchasing prices in order to win your business. Alongside your dealership quotes, these automated price bids can be used as tools in the negotiating process.

Locate All Dealerships in the Area

While TrueCar and Edmunds are fantastic services that save you time and money, it’s not guaranteed that all dealers in your local area are participating. Locating all the dealerships within your area will only help you, and the more price bids you have the better. Some of those dealerships may be hundreds of miles away, but you still can negotiate prices through online sales departments.

You can find each dealer’s contact info through the manufacturer’s web sites, and auto search engine sites like Cars.com can give you a real-time glimpse into a dealership’s new and used car inventory. Buying from a dealership’s existing inventory gives you a little extra purchasing power, as dealers have strong incentive to clear their lot to make some space for
their next order.

Don’t Always Settle for Dealership Financing

While TrueCar and Edmunds are fantastic services that save you time and money, it’s not guaranteed that all dealers in your local area are participating. Locating all the dealerships within your area will only help you, and the more price bids you have the better. Some of those dealerships may be hundreds of miles away, but you still can negotiate prices through online sales departments.

You can find each dealer’s contact info through the manufacturer’s web sites, and auto search engine sites like Cars.com can give you a real-time glimpse into a dealership’s new and used car inventory. Buying from a
dealership’s existing inventory gives you a little extra purchasing power, as dealers have strong incentive to clear their lot to make some space for their next order.

Be Patient

BE PATIENT. This is a great rule when buying a new car. One of the best ways to keep that control in your hands is to be willing to “walk away”. If you walk into the dealership with confidence, strong will and plenty of research on your side, you’re much more likely to walk away with a better deal.