If you are in the market for a new car, here are a few money-saving tips. The most useful tips on buying and maintaining a new car may seem obvious – take a second look.
- Make dealers compete - When shopping for a car, know exactly what you want and the invoice price, which you can get through the internet. Often they will give special pricing to Internet shoppers. They know they are in tough competition because Internet shoppers request quotes from many dealers
- Shop on a rainy day or at the end of the month- If you are looking to buy a new car, go to the car lot on a day when the weather is bad. Chances are they will not have many customers that day, and they'll be begging for business. The end of the month is a great time to consider your purchase as bank rates change and there are sales goals to be met by the dealers. You will probably get a better deal and more for that trade-in than you would at any other time!
- Choose your options wisely – Some options can increase the resale and lower your insurance bill too. Certain options like alarm systems, anti-lock braking systems, stability controls or side impact air bags are wise choices and will keep you and your passengers safer.
- Consider buying certified pre-owned vehicles - buying a one or two year-old car from the dealer can save you money and still offer you maintenance records and the factory warranty is still good, you could get a car with 95 percent of its life left for 20 percent to 30 percent less than cost of buying new.
- New car rebates are given to lure customers to buy new cars. They do so with four major types of rebates.
- Loyalty rebate: are given to buyers who are trading in and purchasing a car of the same model and/or make. Example: Trading in your Audi for an Audi, or any other brand for the same brand.
- Conquest discounts: The opposite of a loyalty rebate. Conquest rebates are offered by a manufacturer to lure you away from the manufacturer of your current car. For example, if you currently own a Toyota, General Motors might offer you $2,000 to buy GM instead of Toyota.
There are other discounts to add on as well. Military personnel and students are also given rebates and incentives designed just for them.
Before you buying, search for additional new car incentives and rebates, there are a few things to consider. First, beware of the time frames given. Rebates expire if they aren't used within a certain time. Meanwhile, incentives expire, leaving the buyer with a high interest rates and even higher payments. For example: 0% interest rates on the first 12 months over a 36-month loan. In addition to regular rebates that may be others deals available at manufacturers website.
If you plan to accept a manufacturer's rebate, don't let the dealer add that during the negotiation. A rebate is your money from the manufacturer (not the dealer) and is deducted once the price of the vehicle has been agreed upon. The current recession has created a unique window of opportunity for those hoping to find rebates and incentives. If you can find an older model (2016 model year that didn’t sell) on the lot, insane deals are sure to follow.
After you make your purchase or lease – it’s still your responsibility to Be Car Care Aware and check your tire pressure and perform basic maintenance.
Lauren Fix, The Car Coach® is a nationally recognized automotive expert, media guest, journalist, author, keynote speaker and television host. Post your comments on Twitter: @LaurenFix or on her Facebook Page.
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