How to save money on a new car purchase

Published on Jul 08, 2012
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Searching for a new car that perfectly suits your needs and preferences takes much time and effort. Customers looking to purchase a new car always want the most value for the least money. Price is often an obstacle that does not allow us to purchase the car we want, but perhaps by learning to save money on new cars, you may have some extra cash leftover for some upgrades, or just to pay for gas.

Car Remodeling

Dealerships often offer cash back on certain models of their brand. This frequently occurs near the end of the model year to get rid of the old stock. At the end of the model year for certain models, you will see great cash back offers. This is because there are small tweaks on the same car, for example a 2011 Toyota Corolla and 2012 Toyota Corolla. A 2012 Corolla might have a couple of very minimal additions which would make the 2011 model seem out of date, so dealerships want to sell as much of the remaining 2011s as possible before selling the 2012s, and this can be done by giving cash back to buyers. From personal experience, the best incentives occur before a complete remodel of the car. Cars are usually remodeled completely after six or seven years and a couple months before the new models are to be sold at dealerships, you will likely see amazing cash back offers from the dealership.

Incentives

Other incentives offered by car brands include free add ons. For example, Nissan has recently offered some extra features (which usually are not standard and cost extra) for a limited time when purchasing the Nissan Altima, their mid size sedan. The cost of these add ons could be valued around a thousand to two thousand dollars, which could give extra value to the car. Other incentives include student incentives, which give special pricing to certain students (usually those in University or College). Currently Toyota Canada is offering $500 off certain vehicles if you attend certain Universities or colleges in Canada.

Some car companies, such as Ford will give cash incentives for recycling your old car and purchasing a new Ford. This approach has been used to convince consumers they are helping contribute to healthy environmental practice, and receive cash back for this. This is also a beneficial incentive because it saves you the trouble of trying to sell your old car, so this incentive is beneficial for you as well as the environment.

Bargaining

This is key in reducing the price of a new car. Dealerships understand there is competition and that other car brands can satisfy customers, so more often than not they are open to negotiations. Doing your research would be helpful. Look around other dealerships and try to get the best offer. For example, if you're looking for a Toyota, check all the dealerships in your area and try to find the best price offered by each individual dealership before making your purchase. Checking the internet is beneficial as well because in some cases, incentives are only given when asked for because the manufacturer originally offered the incentive to the dealer. If you (the customer) do not ask for the incentive, the dealer keeps the incentive when the car is sold. Another important bargaining tip is paying for the car in cash rather than financing. This will usually allow you to get a reasonable discount of around four to five percent off the sticker price. Most importantly, do your research on the car(s) you are interested in. Sounding like a knowledgeable buyer will likely increase your chances of receiving a discount.


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