How to Save Money on a New Car Purchase

Buying a new car can feel like putting a down payment on a house when you consider how much automobiles cost today. You might put off a new car purchase because you're turned off at the thought of making car payments for the next few years. But a savvy shopper can find good deals on new cars if they take the time to do some research.

Instructions

1

Look for cars that interest you at more than one car dealership. There can be a substantial difference in new car prices from one dealership to the next. Some consumers have saved as much as 34 percent on the price of a new car simply by comparing prices at different dealerships. This is especially true if you are willing to travel out of your area to purchase your new car.

2

Ask for a better price on a new car that interests you. Many people assume the car dealer will not offer a lower price if you negotiate with him. Take the initiative to ask the dealer the best price he will offer you to buy the new car. Tell the salesman how much you're willing to pay for the car.

3

Watch for end-of-the-year clearance deals on new cars. You can save money by purchasing a new car in the last few months of the year. As the next year's models arrive on the lot, dealers often slash prices on the current year's inventory to make room for the latest models. Year-end sales are often advertised on local TV stations.

4

Shop for a new car on or near holidays. Good car deals can often be had around Valentine's day, Christmas and other major holidays. Dealers often are willing to offer sales prices on long holiday weekends. Stop by some local dealerships when a holiday is approaching to determine if they're willing to offer you some money-saving deals.

5

Find the best loan rates in order to save money on your new car over the term of your loan. Look into loan opportunities at your bank, credit union and the dealership. If you have excellent credit, you might be able to take advantage of low interest or even 0 percent interest rates offered by the dealership. Take the time to find the lowest interest rates and finance fees for your auto loan.

6

Research the car you want to buy online. Determine its average retail value and use this knowledge to ensure that you do not pay too much for a car. If a salesman tries to sell you a car for more than it's worth, tell him you're aware of what the sticker price should be. You are less likely to be taken advantage of if the salesperson realizes you know something about the car and the price you should be paying.