How to Save Big on Your New Car Purchase

Shopping for a new car can be a little intimidating. The prices seem to be a Big Secret, and the odds all seemed to be stacked in favor of the dealer. Good news! It is possible to get a good deal on that new vehicle. Here are a few tips to help give you the edge.

1. Shop around. Once you've decided on the make and model you want, go and visit several dealerships and find out what kind of deal each will give you. Don't make a decision until you've gotten prices from several, and let the salespeople know you're shopping around. Prices are a lot more negotiable than you probably realize, and each dealership really wants to be the one you buy from.

2. Get it in writing. When you get prices, get it in writing. It will be a big help as a negotiating tool. Dealers like to advertise that they'll "meet or beat" your best deal, and most of them really mean it. Why wouldn't they? If Dealership A can make a decent profit at selling a specific model, so can Dealership B.

3. Be Internet savvy. Before you even set foot on a car lot, do a little research. You can narrow down the make and model you're shopping for, get an idea of the suggested retail price, and find out which models have rebates or manufacturer's incentives on them.

4. Buy last year's model. If you don't feel you have to have the latest model, by all means take a look at last year's. You could realize some significant savings there. A good time to shop is shortly before the new models are released, as the dealership will be trying to make room on the lot of the incoming cars. Remember, too, that the dealer has purchased and has undoubtedly financed the cars on his lot, and is paying interest on all those vehicles, so he has an incentive to sell. (Some auto manufacturers provide dealers with an interest-assistance stipend on their new vehicles, but this normally only lasts for the first 30 to 90 days that a vehicle is on the lot. Older unsold cars cost the dealer more money.)