Posted on Saturday 27 October 2012
New cars are notoriously expensive, but that doesn’t mean you can’t get a price reduction. There are several ways to get a discount. The following four tips will help you save money on your new car.
Look for Zero or Low Interest Deals
The interest on a car loan can cost you thousands of dollars over the sticker price of the car. If you want to save big money, one of the first things you should do is look for low or zero interest promotions. If you can save 3% to 4% on the interest rate, it will leave you paying a lot less over the life of the loan. It will also make it easier to stretch out the term of the loan for lower monthly payments.
Call Every Dealer in Your Area
Car dealers compete with each other. You can save quite a bit of money by using their competitive nature to your advantage. Call every dealer in your area for a quote on your desired vehicle. Then, call the dealer you want to buy from and present the lowest quote you received. Ask the dealer to meet or beat the price.
Forget the Extras
When you are purchasing a new car, truck, or jeep, you are presented with many optional goodies that can drive up the price of your vehicle. Leather seats, sunroofs, navigational systems, rims, undercoating, and other extras can add thousands to your purchase price. Know what you are paying for, and make sure you really want it. If the vehicle you are looking at has extras, ask the dealer for a standard model without the flair.
Learn the TMV
TMV stands for True Market Value. This represents the actual value of a car based on the make, model, and region in which it is being sold. TMV and sticker price are rarely the same thing. The initial price the dealer is asking is negotiable. You should learn the TMV of your desired vehicle and then negotiate with the dealer until you get the asking price down to actual value.