When shopping for a new automobile it’s easy to be enticed by 0% financing and cash-back deals seen on TV or in print. Many of these incentives are only aimed at bringing consumers into show rooms where dealers can then work their magic.
So how do you find the best new auto deals? How do you know which deal equals the most savings? Here are a few steps that will help determine which offers work best for you. Learn how to negotiate the best price and pay less for your new auto no matter the available discounts.
Take Control of Your Buying Experience
Don’t discuss any rebates or incentives before you and the dealer have agreed on a selling price for the new vehicle you want. Smart buyers negotiate solely on the factory invoice price - what the dealer paid the manufacture. Talking about addtional discounts will only confuse the process and give the dealer an added edge.
Know Your Credit Score
Zero percent financing is a great deal, unfortunately, only about a third of buyers qualify for this kind of offer. Carmakers and dealerships use these kinds of offers to lure buyers into the showroom. Unless you have excellent credit you’re likely pay more. If you are looking for an interest free loan it’s important to remember that monthly payments are usually higher due to a shortened financing term.
This doesn’t just mean visiting multiple dealerships, but lenders as well. Before responding to any dealer offer make sure you know what you can afford. Dealers use low monthly payments to sweeten their offer, these usually cause buyers to pay more over the length of their loan. Many banks, credit unions or private lenders provide better financing options.
Find Deals Made for You
Many dealers and manufacturers offer special financing and cash rebates to specific groups of people. If you’re a recent college graduate or active military for example, you may be eligible for these limited offers. Use your career, age, or background to find the best deal possible.
Read the Fine Print
First it is important to be sure the deal you’re negotiating includes all dealer fees and taxes. You don’t want to be surprised by these after you’ve signed your contract.
Second, understand what kind of warranty the vehicle is under. Know before you buy what kind of service plan your new auto includes. If you have to pay out of pocket for repairs it may be better to pay extra for an extended warranty.
Start today, find the best auto rebates and incentives available. Request a free no-obligation price quote and connect with local dealers willing to negotiate the best price on a new auto!