How to get the best price on a new car

Are you in the market for a new or used car? How can you tell if you’re getting the best price?

You don’t want to pay more than the car is worth. Here are some tips to help you get started.

Myths Busted

People say to shop later in the month because the sales staff will sell at any price to meet their quotas. The truth? You don’t know how they calculate their quotas. Maybe it’s quarterly. Maybe the dealership tallies sales on the 3rd Friday of each month.  Maybe they’ve had a great month and don’t need to cut you a deal. You won’t get a good price by guessing the salesman’s income. Do your car research instead.

Research Your Car Online

You can research ahead of time if you’re looking for a specific make and model. Or, you can research online after the dealer makes his offer. One website is Overstock.com. You can select the car make and model, and all the options, and it will give you a suggested price that you can take to the dealer.  Another website is CarsDirect.com. There, you can select the make, model and your zip code. You can also try Kelly Blue Book and the Insurance Institute for Highway Safety. Both sites give good information on car repair and safety features for current makes and models.

Save Money on Financing

If you need financing, do the research ahead of time. Start by reviewing your credit and making any corrections that are necessary. Once your credit is handled, then it’s time to research for the best terms for your loan. Don’t just rely on the dealer for their financing. Check with your bank or credit union, and then other lenders, for the best terms.

Bottom line, do your research so you can negotiate with real up-to-date information. That way, you’ll know you’re getting the best deal.