Buyers can save money on new cars by bargaining online, seeking third-party financing and pitting car dealers against each other. A shopper can also save by timing any new car purchase toward the end of the current model year.
Although on-site test drives are important, people can profit by negotiating prices and financing online. Oftentimes, Internet department salespeople do not rely on commission. Instead, they receive salaries and their commissions are based on volume. As a result, bargaining over the Internet saves consumers an average of $1,000 to $2,000 per deal, as of 2015.
All too often, shoppers secure good deals only to see gains reversed in dealer finance offices. Before setting foot on a car lot, it is wise to secure auto loan financing from a bank or credit union. After choosing a car, give the dealer a chance to make a better offer than the third-party lender.
Competitive auto dealers may offer unusually low prices to keep customers away from competitors. This is due to the fact that repeat customers are very profitable for dealers. Smart shoppers contact as many as ten dealers and let them know who they are competing against. When collecting offers this way, people should specify exact makes and models desired.