Saving Money on Buying a New Car
by David Miller
People that have their sites set on a specific new car model often let the emotion of owning a particular vehicle get in the way of finding the best new car deal. Often new car buyers focus on beating up the only new car dealer that has the exact car, in the precise color they want to own.
People that consider several manufactures' models and let several new car dealers compete for their business will save thousands of dollars when compared to new car buyers that have a closed mind and want to own a precise model, trim package, and color.
Once you have the body style in mind consider your driving requirements, do you drive a lot, if so consider new hybrids. Do you live in a remote area and drive on dirt roads that may be unplowed in the winter, if so you may require a 4x4 or AWD vehicle.
During that time consumers that limited their new car search to low priced new cars with high mpg ratings, which were manufactured in Japan, felt the sticker shock. On the other hand people that bought similar vehicles manufactured in the USA, Europe, or Korea found better new car deals.
The easiest way to find overstocked new cars on dealer lots is to research the rebates and incentives from several OEMs with comparable body styles on similarly priced cars. For example, at the time of this writing Chrysler was offering a $4,000 cash rebate on a new Jeep Liberty and Ford was offering a $2,500 cash rebate on a new Ford Escape. At the same time Honda offered no consumer cash rebate for a similarly priced new Honda Element.
You could, for example, save $1,728.72 when financing a $25,000 car for 72 months at 6% instead of financing the same vehicle at 8%. To find out which rates and terms you may qualify for first check your credit score. If you have a good credit score range, above 680, visit bankrate.com to pre-qualify for new car financing.
If your credit score is lower you may not qualify for a pre-approved line of credit from a new car financing lender. When this is the case you can get a good idea of which rates you qualify before walking in to the new car show room by applying with Auto Credit Express®.
Save yourself a lot of time. Before visiting the new car dealer call your insurance agent and compare the insurance rates on the new car models that you want to own.
Many people, however, trade in their car prior to the manufactures warranty expiring. Several manufactures such as Kia, offer a 10 year / 100,000 mile warranty on every new car in their lineup. To avoid paying twice for coverage that the manufacture may already offer investigate and compare the auto warranties from the manufacture.
There are several free websites, such as kbb.com and nadaguides.com, which make it easy for car buyers to estimate the value of their used car prior to trading it in. Keep in mind, however, that these websites do not include the costs incurred by dealerships to make your used car ready for resale to a prospective used car buyer.
Reconditioning costs include detailing the car, $150 on average, complete safety inspection at about $100; also any safety issues will have to be repaired prior to resale, such as: worn out break pads, tire replacement, etc., costs ranging from $500-$2000 to the dealer.
People that consider several manufactures' models and let several new car dealers compete for their business will save thousands of dollars when compared to new car buyers that have a closed mind and want to own a precise model, trim package, and color.
Have an Open Mind
The first step to getting the best new car deal is to determine the body style that suits your lifestyle and needs. Do you need a 4 door sedan, 2 door coupe or convertible, a van or minivan? Or perhaps you favor new trucks, wagons or new SUVs.Once you have the body style in mind consider your driving requirements, do you drive a lot, if so consider new hybrids. Do you live in a remote area and drive on dirt roads that may be unplowed in the winter, if so you may require a 4x4 or AWD vehicle.
Buy Overstocked New Cars
For several months after the March 2011 tsunami in Japan new car dealers selling Japanese cars were demanding the full sticker price. Additionally, Toyota, Honda, Nissan car dealers, removed all rebates and incentives from low priced fuel efficient cars.During that time consumers that limited their new car search to low priced new cars with high mpg ratings, which were manufactured in Japan, felt the sticker shock. On the other hand people that bought similar vehicles manufactured in the USA, Europe, or Korea found better new car deals.
The easiest way to find overstocked new cars on dealer lots is to research the rebates and incentives from several OEMs with comparable body styles on similarly priced cars. For example, at the time of this writing Chrysler was offering a $4,000 cash rebate on a new Jeep Liberty and Ford was offering a $2,500 cash rebate on a new Ford Escape. At the same time Honda offered no consumer cash rebate for a similarly priced new Honda Element.
Compare New Car Prices from Local Dealers
Assuming a fuel efficient small SUV fits your lifestyle and driving requirements the next step is to compare Ford Escape and Jeep Liberty new car prices from several local Ford dealers and local Chrysler dealers.Pay Cash or Know your Credit Score
Now that you're armed with the best new car price it's time to consider how much you can save with new car financing. It is true that people like Donald Trump and Oprah Winfrey can skip this step in the car buying process but more often than not car buyers who focus on this aspect of the transaction save more money than people who focus only on the new car price.You could, for example, save $1,728.72 when financing a $25,000 car for 72 months at 6% instead of financing the same vehicle at 8%. To find out which rates and terms you may qualify for first check your credit score. If you have a good credit score range, above 680, visit bankrate.com to pre-qualify for new car financing.
If your credit score is lower you may not qualify for a pre-approved line of credit from a new car financing lender. When this is the case you can get a good idea of which rates you qualify before walking in to the new car show room by applying with Auto Credit Express®.
Compare Insurance Rates
Another area where consumers can save a lot of money is by comparing auto insurance rates on competing new car models. Unless you're an actuary, few Americans know how the insurance agencies calculate rates on new cars. What is the cars overall safety rating? How about its propensity for a roll over in a side crash? Are you male or female? What's your age? How often is this vehicle stolen in your zip code?Save yourself a lot of time. Before visiting the new car dealer call your insurance agent and compare the insurance rates on the new car models that you want to own.
Get Auto Warranty Price Quotes
Depending on how long you plan on owning the new car you buy, and the number of miles you drive each year, it may be a good idea to include an extended service contract when you buy a new car.Many people, however, trade in their car prior to the manufactures warranty expiring. Several manufactures such as Kia, offer a 10 year / 100,000 mile warranty on every new car in their lineup. To avoid paying twice for coverage that the manufacture may already offer investigate and compare the auto warranties from the manufacture.
Know your Trade-In Value
Finally, people who know the fair market value of their used car prior to visiting the show room most often are able to negotiate the best new car deal. New car buyers often overestimate the fair market value of their trade-in.There are several free websites, such as kbb.com and nadaguides.com, which make it easy for car buyers to estimate the value of their used car prior to trading it in. Keep in mind, however, that these websites do not include the costs incurred by dealerships to make your used car ready for resale to a prospective used car buyer.
Reconditioning costs include detailing the car, $150 on average, complete safety inspection at about $100; also any safety issues will have to be repaired prior to resale, such as: worn out break pads, tire replacement, etc., costs ranging from $500-$2000 to the dealer.
