Over the years I’ve learned how to buy a car the right way from various friends and relatives (as well as from my own online and offline research).
I’ve been buying cars for about 18 years and these money-saving tips can and do work very well. Some are easier to use then others, but if it means saving a few hundred or thousands of dollars…
It’s worth it.
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When is the best time to buy a car?
Though you may want to buy a car right now, is it the optimal time?
Shop at the end of the month
Shopping at the very last day of the month – even the very last hour – can get you a great deal, because it’s when the car salesmen want to make their quota for rebates, bonuses, etc. At the start of the month, they don’t worry since they have the entire remainder of the month to sell cars.
Just make sure you’ve done your research beforehand, have already done your test drive, and are 100% ready to buy a new car. That way you can just go in, give your price, and be done with it.
Shop when no one has any money
Especially after the Christmas holidays – that’s when car dealership sales are at their lowest.
Between the start of December and end of February is best.
Even car shopping on March 1st instead of February 28th will make a difference because that’s when “spring fever” hits and people are in the mood to buy new cars.
What to look for when buying a used car
Buying used is a great way to save money – but it also comes with a bit more risk.
Make sure an inspection was done recently
The best way to save yourself from future headaches with a used car is to make sure a full inspection was done recently.
If it wasn’t, or if you just want to be extra sure, asking a qualified mechanic to do it again could save you from a lot of future surprises.
Ask for the car’s history, including past accidents and repairs
Past accidents are important to know about because it could indicate some issues with the car may have gone unaddressed.
Using a website like Carfax could help you see accidents that the owner is hiding or the dealer doesn’t know about.
Want to know whether it’s better to lease or buy your car? Check out the 3 important questions to ask yourself when buying a car.
Optimizing your car trade-in value
One of the best ways to save on a car is getting a great trade-in value for what you already have.
Make sure your car is trade-in ready
If you’re trading in your old car, make sure it’s going in “as is”.
Avoid bringing up exceptions like: “Well it comes with everything except the stereo and the subs” or “I’m keeping the rims and putting on my old ones”.
Dealerships don’t want that hassle and it saves you from explaining it every time.
Clean your car
Make sure the carpets are clean, the outside is washed, and all trim/tires are Armor-Alled or dressed up so they look nice and dark.
Nothing looks worse than McDonald’s wrappers all over the place or encrusted mud and grime on a car you’re trying to sell. Show them you’re serious when selling.
Touch up your vehicle
Touch up small paint chips and scratches, and make sure the rubber is within reasonable wear all around.
If not, go to a car wrecker and buy tires with tread. If you have torn seats, buy some seat covers. Also make sure to replace any burnt out bulbs and headlights.
These are all things dealers can pick on as reasons to give you a lower trade-in value, so it’s best to get rid of them.
Related: Do You Really Need Rental Car Insurance?
Do your car buying research first
As always, planning ahead is one of the best ways to save money.
Go in prepared
Show that they can’t pull anything over on you and that you know what you’re talking about.
Take in a notebook and a pen, and bring print outs of a similar vehicle from other dealerships in the area.
It’s also great if you can bring in price quotes from websites and other dealerships you’ve visited.
Know the car’s invoice price
Find out what the invoice price is, or what the cheapest price is in the local area on a certain vehicle model.
Go in and offer $100 over invoice. No questions asked – just $100. This is easy on the salesmen, no haggling or bargaining.
Most major dealerships have their stock, prices, and technical information online. Again, bring some printouts with you, so they know you’ve done your research.
A great place to get this information cheaply is through CarCostCanada or Unhaggle.com.
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How to deal with the car salesperson
The main obstacle between you and the best car price is the salesperson – so here are some tips for negotiation.
Don’t flaunt your income or status
When they ask what you do for a living, it’s best to downplay your job so it doesn’t look like you have oodles of cash.
Salesmen will set their attitude and price on your employment status and position.
Remember who’s in charge
I’ve seen it plenty of times where a salesman thinks they’re in charge and they start either pushing things or denying a legitimate offer you’re making to them.
I’ve actually walked out on a salesman because they wouldn’t throw in free moulded mud flaps. Surprising thing was he stopped me before I got to my car and had magically worked it all out. I got my free mud flaps and a bug deflector thrown in as well.
Never let them think you owe them anything – they owe you. You’re the one with the money, and you can find another car somewhere else.
Until that contract is signed you owe them nothing.
Start a price bidding war
This one is my personal favourite, and has worked for the last 3 cars I’ve purchased with great results.
It works even better if you’ve dealt with different salespeople at different dealerships. Both salespeople must know who you are beforehand to get the desired results.
This it how it works:
- Call up a dealership that you were browsing at recently and leave a message for the salesperson you were talking to.
- Tell him you were just driving by another dealership and saw another vehicle that you’re interested in.
- Be sure not to talk to the salesman in person, just leave a message.
When it works, I’ve actually had the salesman call me on either my cell phone or the other dealership’s number and try to get me out of there to buy his car instead.
Then you get an ideal scenario: the person you’re with wants to keep you there and the other salesperson wants you to leave.
I’ve had a pricing battle happen in front of me without even lifting a finger. The one salesman says one price, I repeat it to the guy I’m with, he counters, and it goes back and forth like that.
On my last new car purchase, I saved almost $2,000 doing this.
Remember, salespeople aren’t your friends
They work on commission and they will try and get every penny from you.
Don’t fall into the trap of thinking of them as friends, because once you do it’s harder to say no to them.
FAQ
When’s the best time to buy a car?
The best time to buy a car is when no one has much spending money and car sales are low, which is usually after the holidays in January and February. You’ll also want to aim for the end of the month, since you can bank on car salespeople trying to meet their quotas. Read more about the best time to buy a car here.
What’s the best tip for saving money while buying a car?
The best thing to do when buying a car is be prepared. If you do your research and seem like you know what you’re talking about, the salesperson will likely see their usual tricks won’t work on you.
Should I buy a new car or a used car?
Buying used can save you a lot of money upfront, since the purchase price will be much lower. But you’re also taking on a bit more risk, and might not have as many quality years with the car compared to buying new. Read more of the pros and cons for both options here.
What to look for when buying a used car?
Buying a used car can save you a lot of money, but not if it ends up costing thousands in repairs down the road. That’s why it’s important to get a trained mechanic to do an inspection. Asking about past accidents and repairs can also help indicate if there are any potential issues you should be aware of.
Should I lease or buy a car?
Both options have their pros and cons. Leasing a car means you’ll be driving the newest models (possibly ones you couldn’t have afforded otherwise), your monthly payments are less, and your warranty never runs out. On the other hand, you’ll never actually own the car, so lose out on resale value and your monthly payments could theoretically go on forever. Check out this article for a more detailed comparison.
This is a guest post by Ken Wallin, a deal enthusiast with loads of experience saving money on consumer goods.
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Comments
You're welcome Dave. Thanks for the positive feedback!
Thanks for stopping by Caron. Hope you will come back and visit again soon!
At 11 years old you're probably due for an upgrade sometime soon YT! Definitely keep these tips in mind if you end up buying from a dealer.
I hate dealing with salespeople as well. The last car I bought I actually avoided salespeople entirely by contacting the business managers directly at several Mazda dealerships in my province and asking for the best price they could give me. I saved a bit of money that way, but if I followed more of these tips I'm sure I could have done better.
What prompted me to do that was the first salesperson I spoke to was unwilling to give me any sort of discount on the car whatsoever because it was an "entry level car" with "low margin". I was paying 100% cash up front with no financing to work out. Needless to say I walked out of there and didn't go back.
Good tip UltimateSmartMoney. That's where CarCostCanada comes in handy because they reveal the true invoice price of the car in your local area and that gives you a baseline for making your offer. I haven't used the service yet myself, but I've heard many positive reports that the information they provide is very valuable and accurate.
I definitely found these tips to be useful as well and will definitely try some of them when it comes time to purchase my next new car or even a used car from a dealership.