13 New Car Savings Tips (Free Expert Guide Preview!)

Buying a new car should be exciting, but the financial aspect can often feel like a battle. To help you win that battle, I’ve compiled 13 specific strategies to help you keep more money in your pocket and avoid common dealership traps.

1. Get the Carfax

Trading in an old vehicle for a new one? Pull your own Carfax report first. This arms you with important information about your car’s value history, and allows you to confirm your car’s record is error-free before the dealer tries to use a “bad report” to lower your trade-in value.

2. Know Your Trade Value

Research what your car is worth on websites like Kelley Blue Book, NADA Guides, and eBay Motors to get a ballpark idea of your trade’s value. Keep in mind: The dealer will offer you the trade-in value (wholesale), not the retail value.

3. Get Your Car Detailed

Dealers want to buy cars they can drive right over to their used car lots and sell—fast. If your car looks great, you’ll get much more in trade. By spending a few hundred dollars on a professional detail, you could make a few thousand extra dollars on your trade offer. Make it shine!

4. Don’t Overspend on Your Trade

On the flip side, don’t replace your old car’s tires or make expensive mechanical upgrades right before trading it in. You aren’t likely to get a dollar-for-dollar return on that investment.

5. Adopt the Right Mindset

Walk into the dealership with confidence, stick to your guns, and don’t feel bad about walking away from any offer. If the numbers don’t make sense, leave. It might also be helpful to practice your negotiation strategies and tactics with a friend beforehand.

6. Make the Most of the Test Drive

Surprisingly, 10% of people who buy a new vehicle don’t test-drive it first! Ask to drive the car home to get a feel for it and make sure it fits in your garage. You can glean valuable information during the test drive to help with your negotiations.

7. Don’t Play the “Four-Square” Game

A common sales technique, the “Four-Square” worksheet is where salespeople ask what you want to spend per month, then work backward to make the numbers fit that payment. This often results in you overpaying for the car or accepting a longer loan term than you intended. Pro Tip: Focus on the total price of the car, not the monthly payment.

8. Think Outside the Box

If a dealer claims they cannot come down on the price, consider asking for other value-adds, such as free oil changes for a year, upgraded all-weather mats, or a roof rack.

9. Ask About Discounts

Most manufacturers offer incentives to entice buyers. Check the automaker websites frequently for rebates, incentives, or low APR specials. You can also ask the dealership directly: “How much of a discount will you give me?” Manufacturers offer discounts for veterans, teachers, first responders, recent graduates, and “conquest” cash if you are switching brands.

10. Negotiate Your Interest Rate

The wrong loan can cost you more than the savings you get negotiating the car price. Dealers make money on financing by marking up the interest rate. Unless you’re getting 0% financing, you should get pre-approved by a credit union before you walk in. If you must borrow, stick with loans no longer than 36 to 48 months and try to put 20% down.

11. Talk About the Trade Last

If you’re trading in your old vehicle, avoid mentioning it until you have settled on the final price of the new car. You likely have more room for negotiation on your trade, so don’t give up that bargaining power until the end of the deal.

12. Watch Out for Up-Sells and “Fake” Warranties

Toward the end of negotiations, you’ll often be taken to the Finance Office where you will be offered “special” extras: tire and rim protection, lost key insurance, acid rain protection, cheap paint sealants, and VIN etching. Most of these items are drastically overpriced.

Additionally, avoid third-party extended warranties financed into your loan; the interest you pay on that warranty over 5 years makes it exorbitant.

Warning on Dealer “Paint Protection”: Dealers often charge $500+ for a “paint sealant” that is essentially a $20 spray wax. Do not pay for this. Real protection requires professional-grade materials applied by certified installers.

13. Protect Your Investment (The Right Way)

Every time you drive your vehicle, the paint is being assaulted by rocks, salt, and sun. Unlike the cheap dealer add-ons, Immaculate Paint Protection offers professional-grade solutions to keep your vehicle looking new:

• Paint Protection Film (PPF): The only way to stop rock chips. Drive with confidence knowing your paint is physically protected from impact damage.
• Ceramic Coatings: Need maximum gloss and ease of cleaning? Our coatings protect your paint, plastic trim, glass, and wheels from environmental damage while making washing a breeze.

Cars are depreciating assets, but protecting the finish helps maintain the resale value. Keep them looking new, longer!

Smart Buyers Protect Their Cars

You saved money buying it—now protect it from damage.