How to Spend Way Less on Buying a New Car

It should go without saying that buying a new car can be expensive, but we’ll say it anyway: Buying a new car is expensive. Really, really expensive. But luckily, many car manufacturers are slashing their prices right now. And to find the best deal, you just have to know what to look for — and where to look.

Wait, why are prices dropping?

Two words: increased competition. The automobile industry is an incredibly over-saturated market. These days, all of the major car manufacturers sell every type of car. It doesn’t matter if you want a van, an SUV, a hatchback, a traditional sedan or some other sort of crossover — you can find what you want from any manufacturer. So because everything is so similar across the market, each of these manufacturers know that they need to get your attention somehow. All of them have to simultaneously offer the best inventory and the lowest prices. So when one does this, the rest have to either follow suit or get left behind. This can be a difficult pill for them to swallow, but it’s something that can definitely work in your favor if you’re shopping for a new car. Add this to the fact that car dealership owners know that people are less and less likely to settle for the sticker-price on the lot these days, and you could wind up saving really big.

Give me some info that will put me ahead of the game.

Glad you asked. To get the best price on your dream car, here are some important things you need to know.

• Never settle for the price on the lot. The salesperson at a dealership wants to sell you a car, not give you a good deal. Remember this. In fact, salespeople at these dealerships actually expect you to negotiate, so don’t agree to the market price.
• Every car manufacturer offers warranties and maintenance packages that are comparable to one another. You can negotiate these as well.
• Car dealerships usually have more supply than demand. It’s in their best interest to get cars off the lot, and they need your business.

You can probably afford a better car than you think.

Yes, really. Even if owning a luxury car has never crossed your mind as a real possibility, it’s not out of the question. But why are the prices of luxury cars becoming more affordable? In short, even the most “normal” cars now have luxury features like back-up cameras and other smart digital amenities. So since these luxury-car manufacturers know that you can afford similar amenities on lower-cost cars, they need to offer extra incentives to get and keep your business. Don’t write this off as a possibility.

So how can I get the best deal?

In short, you need to know the market and be smart. You can’t just walk into a dealership today and expect to be given the best price on your dream car. They’re going to try and sell you the car at its highest market rate, and if you accept it, you’ve been duped. The answer to this is to do your research online. There are sites out there that will tell you all you need to know. These sites will show you what’s out there, and they’ll show you prices that are far less than the prices you’d find at a dealership. Visit these sites and stay organized by keeping a spreadsheet of the options you discover online. Talk to friends and family about them, and when it’s time, you can start shopping in person. Ready to find those great deals online?