Purchasing a new vehicle in the U.S. will set you back an average of $33,319, according to sales figures from the first quarter. As a result of this sky-high price, new car sales are down by 2.5%, due to an increasing number of individuals stating that vehicle ownership is unobtainable. But, you’ll be pleased to hear that there are ways to buy a new car for less than the national average.
Re-evaluate your size requirements
2018 saw American motorists fall in love with SUVs. 68% of all the vehicles sold last year were classed as an SUV or truck. By choosing such a vehicle you can expect to pay big as they have more components and more intricate parts than less popular motors. But unless you’ve got a large family or regularly drive off-road, you’ve got much more to gain by opting for a fuel-efficient sedan, such as the Honda Civic or Ford Focus.
Put down a bigger down payment
Experts recommend those car buyers have a down payment of at least 20% of the final purchase price of their vehicle. Yet, the average down payment is just 12%. This means motorists are paying more interest on their new vehicles than anticipated. Some people are doing this because they have a poor credit score and think they have no other choice. But, there are finance options for individuals with varying credit statuses. So, when you’re planning the finances for your new car, make sure you consider all the ways that you can boost your down payment.
Negotiate on price
Just because of the new car you’re after has a set price tag on the windshield, it doesn’t mean that that’s the price you have to pay for it. The first thing you should do is determine the true market value of the car by using a service such as Edmunds or True Car. It’s also advisable to compare prices between dealers. From there, you can set your price and enter into negotiations with your dealer of choice. And, remember if one dealer doesn’t take the bait, there are plenty of others who you can try your haggling skills out on.
The high cost of a new vehicle is deterring consumers from purchasing a new vehicle. However, by following these simple tricks, you’ll be surprised at how much you can save on a new set of wheels.