How Can I Get The Best Price For A New Car?

Buying a new car can be a major headache. Not every dealership is always willing to work with you on the price. They are trying to make money, remember? And unless you have cash in your pocket, not every dealership offers the best financing. This can be frustrating if you find just the right car and you can’t negotiate the right price.

Yet buying a new car can also be exciting and rewarding, especially if you fell you got a good deal on a car. It is a huge investment, after all so no one wants to spend more than they have to. When shopping around, many people ask themselves how do I get the best price for a new car? Is there anything I can do to lower the price? What factors are involved in getting a good price? Check out the questions below for some helpful advice.

Should I Shop Online For A Car?

If you are considering the question “how can I get the best price on a new car”, then the first place you need to check out is the internet. Do your research. There are plenty of websites with information about new cars, their options, and prices. One place to check out is Edmunds.com. They will give you customer reviews, available discounts, car descriptions, and market price. Use the research to help you to decide what kind of car you want.

You can buy a car online at sites like Ebay, Craigslist, or Lemonfree but most people will have to go to a dealership for a brand new car and to get the financing. You can take the information you found online and compare prices. Don’t be afraid to tell the dealership that you are shopping around at other competitors and what their prices are for the same car.

Do The Dealerships Mark Up The Price?

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Yes they do. As you walk around the dealership’s lot looking at all the shiny new cars, you will see the sticker on the window that has the suggested retail price. This is the price that the dealership would like to get. But that is not the car’s real price. To figure that out, take the invoice and subtract 3% from it if the car is a domestic. If it is a foreign car, subtract 2%. Then subtract another $400 to $800 for the kick-back that the dealership receives from the manufacturer for selling a minimum number of cars. The end result is the actual price of the car and that is what you should be negotiating for.

Will My Credit Affect The Price?

Every dealership is going to check your credit record because it will affect your financing. New car buyers with a good credit score will have an easier time getting financing and be able to negotiate a lower interest rate. Unfortunately, if you have a low credit score, financing will be more difficult. Some companies will not finance buyers with bad credit. If they do, you can expect to get a high interest rate.

Should I Sign Right Away After I Find A Car I Like?

If you visit a dealership and find a car that you like, the salesman will try to get you back in their office and get you to sign right away. Never, ever do this. You won’t get the best price. After showing interest in the car, leave. Do some more research and call back to the dealership in a day or two if they have not called you first. Try to get them to come down on the price by telling them what you have found online. You can even make them sweat by telling them about this nice car you found at another dealership. In a few days they might come down on the price again.

Is There A Good Time To Purchase A New Car?

The last factor in how can I get the best price for a new car is timing. Usually at the end of the month is a good time to buy a new car. Dealerships will usually be trying to make monthly quota around that time. Also, the winter months are usually slower. Everyone wants to buy a new car in the spring and summer when it is warm and when most people take vacations. Another good time is at the end of the model year when the new models come out. You will find a lot of dealers giving discounts on the older models to make room for the newer ones.