If you are in the market for a new automobile, saving money is likely one of your main goals. Becoming the owner of a new or used car can lead to buyer’s remorse if the individual realizes he or she did not get a good deal. Follow these steps for smart car shopping and you will be pleased with your decision.
Step 1: The auto industry is currently bouncing back from historic lows in terms of sales. This equates to a higher level of sales and lower inventories. Research what price the dealer paid for the desired car plus any available manufacturer incentives. Edmunds, Kelley Blue Book, and Consumer Reports are some Web sites that provide valuable information regarding auto specifications and pricing.
Step 2: Prior to visiting a car dealer, arrange the auto financing. Right now, commercial banks and credit unions are competing for consumer business and offer low interest rates on loans. If auto financing companies are not offering the lowest rates but auto rebates are offered, take the rebate instead and finance the car somewhere else.
Step 3: To move inventory at the end of a model year, dealers price last year’s vehicles very low. A 2011 model will cost more near the sticker price than a new 2010 model that might have the same design and features. Do not forget about late model used cars that feature low mileage. Some of these are in great condition, straight off a lease. They are often still under the manufacturer warranty and their value has sufficiently depreciated.
Step 4: If you want an expensive new car or to change cars every three or four years, consider leasing an automobile. With leasing, you will not need to worry about costly maintenance often required for an older vehicle.
Step 5: If a trade-in is involved, consider selling it privately. Dealers often make a lot of money on trade-ins when you purchase another vehicle from them. If the car is not worth trading in, donate it to a charity for an itemized tax deduction.