New Car Discounts: Get the Best Deal

Car commercials keep telling us that now is the time to get the best discounts on new cars. Consumers should take advantage of these new car discounts, but also be aware that there are additional ways to shave money off the sticker price. Using these new car discounts and money-saving tactics will help you lower inflated dealership prices.

New Car Discounts Tip #1: Negotiate Final Price, Not Payments

To get the best discount on a new car, don't even discuss car payments. Car salesmen talk in terms of payments to add more numbers for you to keep track of, confusing the final price total. By setting a payment amount, you are setting yourself up for a price increase. Chances are, the most you can pay a month is going to be the "wonderful" deal you are offered. By dealing in terms of monthly payments, salesmen get you to commit to more money than you are willing to spend, while making it seem like an insignificant amount. They get you to set a comfortable payment price, then casually ask how high you can go. If you allow that you can afford a payment increase of $50, that works out to a $3,000 increase, over five years.

New Car Discounts Tip #2: Failing Dealerships

Due to the struggling economy, car dealerships are closing all over the country. Many are desperate to sell off inventory. For consumers, this translates into deeper discounts on new cars. These dealerships will be willing to go far below the sticker price, just hoping to break even. A warning signal that a dealership may be closing, is huge price cuts on all inventory. Some might even advertise a going out of business sale. Check local news media for any stories for tip-offs on dealership closings. You may be able to beat the crowd and have more selection.

New Car Discounts Tip #3: The Salesman is Not Your Friend

Do not trust anyone who is making a commission on the sale to hand you the best discount on a new car. Most car salesmen will work very hard to make it seem like they are your friend. This is a tactic used to lull you into trusting them and thinking they are on your side. They are not. Have you ever experienced a car salesman suddenly remembering a new car discount? This always happens after you have decided the price is too steep to commit to. Their sudden memory isn't just a lucky coincidence. It's just another step in the haggling process.

New Car Discounts Tip #4: Do the Research

Now that we have established that the car salesman isn't your pal, how do you know what new car discounts are available? New car discounts can be found with a little research. There are Internet sites, such as Edmunds.com, that will search for new car discounts for you. When figuring the amount of your first offer, take all the discounts available from the sticker price. Then offer them less. If the salesman doesn't think they will be able to budge on price, inform them that you have done your due diligence and are aware of several discounts. This tactic allows you to negotiate up to a price that is still a good deal.

New Car Discounts Tip #5: Buy an Older Model

Car manufactures introduce new models to their lines every year. This results in dealerships being overstocked when the new models come in. They will be willing to offer bigger discounts on older models to make room for higher-ticket new models. In addition to price discounts, dealership financing may offer a no-interest period, to entice you into buying an older model.

New Car Discounts Tip #6: Manufacturer Discounts

Most car manufactures offer their factory employees special discounts on new cars. Sometimes they even hold manufacturer family discount sales to the public. This is a clue that the discount is possibly available year-round. Never be afraid to ask for sale price before the sale officially starts. Most car sales run in cycles throughout the year and are often extended events. This shows that there is a little leeway with sale dates.

New Car Discounts Tip #7: Know Your Trade-In Value

Getting a fair trade-in value for your old car can be tricky. The first step to receiving full value is to not mention you have a trade-in, until the negotiated sticker price is set. This keeps the salesman from factoring it in with other discounts on new cars. Make sure you are aware of the trade-in value of your car. Kelly's Blue Book is a good resource or you can look it up on-line. Salesmen will try to low-ball you on trade-ins, taking advantage of your eagerness for a new car.

Doing your research will garner you the greatest discount on a new car. Never feel pressured to buy. A new car is a major purchase, that shouldn't be rushed into. Rely on these new car discount tactics and score the best deal possible.

Sources:
www.edmunds.com
www.lemonlawamerica.com
www.milliondollarjourney.com