Best Discounts when Purchasing a New Car
New Car Discounts: Buy the Older Model Year
One huge discount on new cars comes when you buy your new car right when the next model year comes out. At that point of the year, typically the fall, dealerships are really overstocked with cars as the new one comes in, and they will drastically cut prices on the older model to get them off the lot. This is especially true when the newer model has a sleek new body redesign.
This strategy is most effective for people who plan to keep the car for at least 5 years, at which point the difference in value between the two model years won't be significant of a factor in the resale price. You will save far more in new car discounts on the older model than you would get in resale price on the newer model.
In addition to a lower purchase price, some discounts on new cars are also passed along in the form of free upgrades. These are added to older models as incentives for people to purchase them, so you might end up with a free CD player upgrade or a nifty spoiler or alloy wheels.
The last main discount on new cars that you can get by purchasing the older model year only applies if you are financing the purchase through the dealership. They will often offer great packages of no interest or payments for a certain period of time, which can save you a lot of money. Just make sure you can pay the bills when they start coming!
New Car Discounts: Pay in Cash
If you can pay for the full amount of the car in cash (or check) upon purchase, the dealership will often offer you a good discount on your new car. This is because they don't have to bother with the paperwork of the loan or wait for years and years to get all the money. You will also save a lot of money in the long run because you will not be paying all that interest on your car loan.
New Car Discounts: Buy From a Struggling Dealership
The last set of discounts on new cars are those that are found dealership-wide at struggling car dealerships. If a dealership is not meeting sales or is going to be closing, they will often cut prices on all of their vehicles. Keep your eyes open for dealerships in your area that are having big sales on their new cars.
Published by Kristen May
I grew up in Southern California, went to college in Minnesota, and am currently undecided on where I'll be settling eventually. I get much enjoyment from God, fresh fruit, large snowflakes, baby animals, th... View profile
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