Practical Tips for Saving Money on Your Next Car

When shopping for a new car or truck, you want to be sure to get prices from at least three or four different dealers.

With a little effort you can take control of the new car buying process and come out with the best deal.

It’s tough to get good at something you don’t do very often, and for some people that’s certainly true of buying a car. These eight tips can put you in the driver’s seat with less stress at the best price.

1. TAKE CONTROL OF BUYING A CAR

After test driving and once you decide on the make, model, and style of vehicle you want, get quotes by phone or email from dealers. This saves time, and they lose the home advantage of reading your body language and sizing you up in person. Also, you can do this from the comfort of your home, rather than at a dealership.

2. GET MULTIPLE QUOTES

You want to be sure to get prices from at least three or four different dealers. You should do this:

• To get a feel for what a good price is.
• So that dealers know there are other dealers involved. This may make them put their best foot forward, because they only get one chance at your business.

3. WORK WITH DEALERSHIP MANAGERS

It’s the managers — sales manager, fleet manager, general sales manager, internet manager — who can decide price on the spot, and aren’t on commission.

4. DON’T GET QUOTES IN THE FORM OF A PRICE

Instead, request your quotes as a profit margin (such as “$500 over invoice” or “$4,000 under manufacturer’s suggested retail price”) for a specific make, model, and style, regardless of color and options. This way, you can use it for whatever vehicle is available that starts with that description.

5. BUY A CAR AT THE END OF THE MONTH

Managers have quotas to hit each month, so the end of the month is a good time to negotiate. They may get a bonus for hitting their quota. If you’re the customer who puts them over the top, that can get you a better deal.

6. CHECK FOR ADDITIONAL AUTO REBATES

In addition to a general rebate, you might qualify for additional rebates available from the manufacturer.

Most manufacturers have rebates for specific types of buyers, such as military, senior citizens, first-time buyers or repeat customers. These types of rebates are not from the dealer, and can lower the price of the vehicle.

It’s up to you to ask dealers about all of the qualifying rebates available, as they may not offer this information. Dealers should be happy to check, because it helps them to sell a car using the manufacturer's money.

7. GET SOME LEVERAGE ON YOUR TRADE-IN

If you have a trade-in, get an actual offer for it ahead of time via AutoTrader.com’s free tool (which is still subject to visual inspection by the dealer making the offer). In addition to being free, this service is:

• Anonymous;
• Good for three days;
• Gives you leverage over whomever else is considering buying your trade-in, if they offer less.

You can use the offer from the AutoTrader dealer to get others to meet or at least increase their offer, as they know you now have a better offer. They’ll have to make a decision on if they’ll up their offer on the spot or risk losing you completely.

8. DON'T LOSE WHAT YOU'VE GAINED

As a rule, you may want to avoid (or at least get back to the dealer) on everything they try to sell you after you agree on the price of the vehicle itself. These items can include physical add-ons or treatments and extended warranties, Many items in this category tend to be overpriced, unnecessary or both.

At the very least, compare elsewhere to be sure, as you don’t need to decide anything at the point of sale. You don’t want to give back everything you’ve saved up until that point. You can always get these items later, but the person selling them is on commission, so will most likely push you to decide now.