Action

How to Save Money When Buying a Car in 2021

Economic hardships and a global pandemic have made new SUVs more affordable than ever. Due to an overstock of unsold inventory, dealerships MUST clear space for 2021 models. Smart internet users are suddenly blessed with the chance to get into a new SUV or Crossover as dealers scramble to make space by posting the best deals and rebates online.

Oversupply Means Savings

There are more than 15 different makes of vehicles sold in the US. In general, each maker offers a sedan, a hatchback, a truck, a crossover, and an SUV. To get you onto the lot and into one of their cars, dealers are willing to offer incentives, rebates and competitive interest rates. The internet allows you to shop far more competitively and know exactly what you are getting before you even sit in front of a salesperson’s desk.

Choosing More than Just Color

Before you even look at a new car, do some homework. Check out price, safety ratings, cabin size, engine specs, and other important features. Write down what you learn and then go for a test drive. You’ll eliminate some cars just from sitting in them. And you aren’t wasting the salesperson’s time. They are there to sell you a car and test driving is part of the sale.

Once you’ve settled on a make and model or two, research the MSRP, invoice price, and average transaction price. Your goal is to pay an amount falling between the invoice and the average price. Check out the rebates and offers available through the manufacturer.

Don’t forget that higher end cars need to be sold as well. You might luck into a deal on one that has been left on the lot too long.

Choosing Loan Terms

Find out loan terms from your financial institute but don’t have them do a “hard pull” on your credit. That temporarily lowers your credit score. Find out what the car companies are offering for rates and terms. Since you usually can’t stack the rebates and offers, always go with the one that saves you the most money over the long term. There are good online calculators that will help you compare rates and rebates.

Work the System

Search online for the car that meets your requirements. Sometimes a short drive to a different dealer will help you save money. You may be able to get your local dealer to drop the price based on what’s on the other guy’s lot.

Try going in toward the end of the day on Friday at the end of the month. Dealers have quotas and they may be far more likely to make you a deal so that they met their numbers. Also, be willing to look at the less popular color or the car that has sat on the lot for too long.

Don’t be afraid to walk away. Sometimes, the salesperson will call you will a deal just to get you back in the business. They want and need to sell cars. Use that in your favor.

Finally, write down what you want and what you’ll pay. It is a lot harder to distract you when you’ve got concrete data in front of you.

Finding These Deals

If you are in the market for a new car, do your research. There are dozens of great websites out there that will detail the good and the bad for every car. Decide what is the most important to you and don’t be dazzled by the bells and whistles. Do your homework and write down what you want. Be nice when you negotiate but don’t let the salesperson push you around. It’s your money and your future car. Since they really want to sell you the car, they’ll be willing to work with you.

Sources:

https://www.caranddriver.com/features/g25105816/cheapest-new-cars-2019/

https://www.cnbc.com/2019/01/03/general-motors-new-vehicle-sales-drop-2point7percent-in-the-fourth-quarter.html

https://www.statista.com/statistics/264362/leading-car-brands-in-the-us-based-on-vehicle-sales/

Click to comment

Leave a Reply

Your email address will not be published.

Most Popular

To Top