After a house and college education, a car is the largest purchase that many families make. With a $33,560 average price for a new car, it pays to take the time to shop around. Car buyers must weigh the pros and cons of new cars versus used and buying versus leasing. Below are three recommendations to consider:
Do Some Math- Compare low-interest, even zero interest, financing and cash rebate deals using an online calculator.The better alternative will depend on two main factors: how much below market interest rates the lower rate dealer financing is and the repayment period of the loan.
Do Some Research– Check out car pricing web sites such as www.edmunds.com and www.kbb.com before visiting dealer showrooms and review local auto advertisements. Find out the dealer invoice price or, better still, the dealer’s true cost after manufacturer bonuses and incentives.
Keep Transactions Separate- Negotiate each part of the transaction- car purchase price, financing, and car trade-in price- one at a time. Otherwise, it is easier for a car dealer to get a higher markup by offsetting a low price in one area with a higher price in another. Settle on the new car price first and get it in writing. Then get a price for a trade-in.