Money Saving Tips on Buying a New Car

Buying a new car can be exciting and nerve wracking at the same time. I recently went through this ordeal and surprisingly lived to tell about it. I prepared for pushy salesmen, a few fibbed facts and even for excuses but what I wasn’t prepared for was the price hike when the financing portion of the car shopping day went through. Here I will explain just a few things to watch for when buying a new car.

Know What You Need

If you are single with no kids and want a sporty two door, fast as grass vehicle than shopping for a car will most certainly be fun and yet still stressful. Don’t tell the car dealer or salesman what it is you want; tell him specifically what you need. Do not be swayed by the shiny car on the showroom floor that is not the economical choice for your next new car.

Do look at options for your situation, if you need a gas mileage aware car and your only requirement is an automatic transmission than be sure to look at the certified used cars that the lot has to offer. More often than not you can find a gem in the back lot, with low miles and a much lower sticker price than the brand new vehicles. This is one way to save you money on your new car purchase.

Do Your Research

Now that you know what you need in your next new car, do your research. There are several internet sites such as Edmunds.com that will review and evaluate all sorts of vehicles and their in depth analysis is well rounded and non biased.

In your research you should check Kelly Blue Book for more reviews, classified listings and reliable pricing guide used by the salesmen themselves. Having this knowledge from the beginning of your new car search is empowering and helpful in the negations.

Listen But Don’t Always Believe

Salesmen and dealerships make their money on commission of sales. If you don’t buy their car than they lose that commission, some (not all) will say whatever it takes to get you to buy that day. Have you ever heard…

1. She’s a RARE model
2. Hard to find one in this good of shape
3. Only one owner!
4. This one WON’T last…

While some of these might be true, a rare model to him might really mean, this is the only one on the lot. Hard to find one in this good of shape might mean because we just had it detailed. Only one owner could translate into “previous owner got tired of paying the maintenance it required.” And this one WON’T last said just to create a sense of urgency in your purchase. So, listen but don’t always believe.

Dealership & Manufacturer Rebates

While cash back may sound enticing you need to do your homework before your sign the contract. Don’t be afraid to ask questions about financing, in almost all cases if you don’t obtain financing through the dealership these “rebates” aren’t available to you.

When you have your own financing the dealership might tell you that you are aren’t eligible for all the rebates, the truth is- if you have your own financing already set up you ARE eligible for the manufacturer rebates, just not the dealership rebate.

Be sure to ask up front and tell the salesmen you have your own financing already. Don’t be swayed by the salesmen trying to convince you to obtain financing through their resources, your own financing through a bank or a credit union is always the better deal. If at anytime you are uncomfortable with the dealership or the salesman leave. There are always more down the road.