How to Save Time and Money on Your New Car Purchase
Ahhh. That new car smell! There's nothing quite like it to bring a smile of excitement to your face. You've looked around, done your homework, taken a test drive, and now you're ready to buy. Few things can put a damper on your new-car enthusiasm like sitting down to talk about the price. But you don't have to leave the dealership feeling like you've been ripped off.
Do Your Homework
One of the best ways to save money at the dealership is before you ever get there. Start your search for a car online, and get purchase quotes from new car buying sites and dealerships available online. Often, you can "build" the car you want virtually on a manufacturer's website, find out what the suggested retail price is, learn when rebates are being offered, and the factory to dealer incentives. Get your financing in place through an online lender, and you won't have to waste time with the dealer's finance department (never mind the money you'll save!).
Shop at the Right Time
Plan to make your purchase around the end of December. Dealers are trying to break year-end sales records and attract customers to otherwise deserted lots (most people are more interested in buying Christmas presents than new cars), so they're ready to cut their prices. July to October is another great time to buy because the next year's models are arriving, and they need to make some space. This is the time of year when consumer rebates and secret factory-to-dealer incentives make their appearances. You could save up to $5,000 on your purchase by getting the dealer to waive his or her secret incentive.
Just Here For the Basics
Oftentimes, dealers will try to sneak things into the price that you wouldn't request if given an option. For instance, an "environmental protection package." This is usually a clear coating that is supposed to help keep your car's paint from oxidizing as quickly as it normally would, and/or "rust-proofing" is typically added as well. These items show up on the invoice to the tune of anywhere from $100 to $500 each. You do not need them, they will not add any appreciable value to your purchase, and you do not have to pay for them, even if the work has already been done.
Then there's the various and sundry fees for destination charges, factory holdbacks, dealer prep, advertising, documentation fees, and VIN etching. You can negotiate to get some, if not all, of these fees dropped out of the purchase price. And let's not forget the infamous "extended warranty." You can find a better deal online, with many priced around 40 percent lower than at the dealership.
Closing the Deal
When you do go to the dealership to make your purchase, you'll want to bring a few things with you to show the dealer that you didn't just fall off of the turnip truck:
- All of the purchase quotes you received when you did your Internet homework.
- The information you gathered on new car invoice pricing, rebates, and incentives.
- Proof of your pre-approved new car loan you got online.
- Proof of appropriate vehicle insurance.
- Your present car's trade-in value and its market value.
- Quotes for an extended warranty that you can compare to what the dealer is offering.
Given the proper advance preparation, your new car buying experience can leave you feeling good about your purchase.
