best car deals

What are the ingredients of best car deals?

Be aware that if you push up the price of a new car too high, some dealers may try to find profits elsewhere in the deal. For example, a dealer may set a lower discount or include an extended warranty on a sale. So beware of underpriced prices. If the dealer offers you a car for less than the invoice price and there is no incentive to explain it, take note.

Be aware that if you push up the price of a new car too high, some dealers may try to find profits elsewhere in the deal. For example, a dealer may set a lower discount or include an extended warranty on a sale. So beware of underpriced prices. If the dealer offers you a car for less than the invoice price and there is no incentive to explain it, take note.

Now that you know how good the car price is, let's take a look at the rest of the deal and what are best car deals.

Rewards and kickbacks

best car deals have become an important part of car buying in recent years and can save you thousands of dollars. This group of savers includes customer cash rebates, low interest financing and leasing deals. It also includes "dealer cash," an implicit incentive described on as "manufacturer to dealer."

Check the discounts and incentives available in your area and make sure the dealer correctly applies any incentives you are eligible for to the purchase price. For customer cash rebates, the rule of thumb is to negotiate the lowest price and subtract them.

The trade-in price

Yes, it's very convenient to trade in old cars at the dealership. But many shoppers who look only at the price of a new car waste thousands of dollars by accepting too little of a trade-in. Determine the value of a used car by looking up the TMV trade-in price. When calculating the TMV trade-in price, remember to include all options on the car and its range. Be realistic about the condition level. Few used cars are "outstanding."

Also remember that you don't have to trade in cars. You can sell it to private parties and usually get more money than the dealer will give you. You can even bring it to CarMax for a price that sometimes exceeds the dealer's trade-in offer.

Legitimate and bogus expenses

Dealers charge only three fees: state and local sales taxes, a reasonable documentation fee (also known as a "documentation fee"), and a motor vehicle registration fee.

In some states, documentation fees are limited by state law. When these costs are not controlled by the State, there will be a local document average cost price. Call some local dealers for current exchange rates. In Arizona, for example, the cost of documentation is $395. Florida is also known for its high documentation fees.

Some traders will invent their own fees with official names and add them to their contracts. You need to find out about these charges as soon as possible, as these extra charges may be enough to convince you to shop elsewhere. Many of these fees range from $200 to $400 and come with names such as "dealer ready". Sometimes it's just an abbreviation, like "D&H." For popular or recently launched cars, dealers may try to add "market adjustment" fees that can run into thousands of dollars. These extra costs are negotiable.

For more information about more fees, read "What Should You Pay?"

best car deals financial

Smart car buyers buy loans at the highest interest rates long before they go to the dealership. Getting pre-approved financing from an independent lender is a good idea, especially if you are a person with poor credit. You can then head to the car park with a blank check (whose lender has set up a line of credit) and negotiate as the buyer of cash. The dealer may still be able to exceed the lender's pre-approved interest rate, but with this loan, you have a good bargaining chip.

Overpriced add-ons

Now that you have settled on a good price, you will enter the Finance and Insurance Manager's office to complete the transaction. This person may provide you with many other products and services.

For example, an extra alarm system, a $275 "spray paint protection kit" or a $100 device for embedding the vehicle identification number into the main parts of the car. Extended warranties can be valuable, but dealers will often significantly exceed their wholesale price.

Other factors to consider

After you have completed all these transactions, it is recommended that you consider some intangibles. For example, customer service is very important. Do you find sales people responsive, knowledgeable, and efficient? Are you confident that, even after the transaction is completed, he or she will redeem the transaction and continue to respond to your needs?

What about the dealers themselves? Is it part of your community? Is it convenient for home service? Given the importance of these other issues, you might decide it's worth paying a few hundred dollars more for a car.

It's worth asking yourself your time before you make another round of calls asking for a bigger discount or competing with a dealer. If you think you can still save $1,000 or more, go for it. But if you're going to negotiate within a narrow range and you can save up to $200, ask yourself if it's really worth it. Saving that $200 could mean taking longer to get on the bus or negotiating a long negotiation with the sales team. Either way, your vehicle delivery could get bogged down.

The whole package

The purchase price is just one of many factors that can affect how much you actually spend on your new car. If you know what to look for in all aspects of a trade, you can be like a chess player, who is always looking for a few steps forward. You want to negotiate a good deal in all aspects, not just the price.

For car buyers, the end of the year is usually the best time to get a lot of best car deals.


This time things look different. While discounts and special financing are still available for certain brands and models, those incentives typically aren't as generous as they used to be in December, experts say.


"It's not a buyer's market, but there are still discounts," said Ivan Drury, senior manager of insights at "Are they as widespread as they used to be? Of course not."


best car deals have not been as heavily discounted this month because of a combination of factors, including a stock squeeze caused by the closure of pandemic plants and unexpected demand from home-based consumers looking to hit the road.


Basically, the dealership doesn't have to go to great lengths to get the car off its lot. The average selling time for both new stocks in 2020 and 2021 was 50 days.


"It used to be 60 to 70 days," Drury said.


What's more, prices have dropped an average of 10 percent or more in recent years, occasionally falling below that threshold, said Kelsey Mays, senior consumer affairs editor at


"We've now been below 10 percent for four months in a row," Mays said.


The average price paid for a new car is now more than $38,000, a record high, up from about $37,100 last month, according to a forecast released last week by JD Power and LMC Automotive. The main reasons are a shift in consumer demand for larger vehicles such as SUVs and trucks rather than smaller cars, as well as improvements in technology and safety features.


While demand in the used-car market has surged this year, pushing up prices (and trade-in prices), it appears to have cooled somewhat as some buyers have discovered that less expensive new cars are not. Experts say it's a lot more than some expensive used products. As of October, the average used-car buyer paid $24,000 for a three-year-old car.


Other used-car shoppers may be waiting for the 2021 best car deals.


"Often people prefer to wait for the next calendar year to change because the model year is a year older," Drury said.


Where's the deal?

In general, you'll probably find a bigger discount on the current model. Across all categories, from large SUVs and trucks to compact cars, the average 2020 car discount is more than $5,000, according to Edmunds. For the 2021 model, the figure is less than $3,700.


Some brands may also offer deeper discounts because of slowing sales of certain 2020 models. Overall, 34% of the vehicles in the database are this year's models. But for Ford, it's more than 72 percent, and for Nissan, it's more than 61 percent.


"These are two very mainstream brands," Mays said. "They have a full range of 2020 models that consumers can find quite significant discounts on."


The 2020 Ford EcoSport, for example, starts at about $20,000, according to, with manufacturer discounts ranging from $3,250 to $6,750, depending on the car's interior and where you live.


It is well known that best car deals lose value quickly once purchased and continue to depreciate over time.


So if you're considering a longer loan (72 or 84 months), be aware that it may take longer to reach a car payment you no longer need to make. That is, when you pass what is called the point of negative equity, it is also known as an upside down loan.


While this depends on the type of car and the details of the transaction -- the amount of financing you have, the interest rate, the number of years you need to pay -- negative equity can make it very difficult for you to at least owe you the money for the price of selling the car to trade, or trade it without turning the remaining balance into a new loan.


Ask yourself if you'll still love this car in three, four, or five years.


"By extending the loan term, the commitment is not only longer, but you get to the break-even point where you're not upside down," says Matt Jones, TrueCar's director of industry education.


"Make sure it's the right car not just for now, but for the future," Jones said.


Also, it's worth checking how this new car will affect your insurance. Depending on the make and model (and factors such as where you live, your driving history and claims history), your premium may increase.

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