Getting the best price on a new car is not a random act, but rather the combination of several different acts. The entire process of getting a good deal starts with gathering real-world information, knowing when sales happen, cleaning up credit issues, saving, and being aware of the various features and models available. It also helps to be flexible when it comes to vehicles, as there are many vehicles that will meet almost any need. Focusing on only one vehicle is a poor decision from a financial standpoint in most cases, so focus on needs and wants rather than brands whenever possible.
It pays to know what different model vehicles are on the market, and which each model sells for so long as each model meets a specific set of needs. This means that a needs and wants assessment needs to be done before comparing models. It would also be important to remember to consider resell value and other factors that contribute to total cost of ownership. Most of these factors can be found alongside quality reviews in magazines such as Motor Trend and Car & Driver, or on quality websites such as Edmunds.com. Be certain to only look at trims that meet all needs, and note which trims on which makes/models meet which wants that have already been defined.
Note that the MSRP listed by manufacturers and reviewers is not necessarily what customers end up paying. Use Google or another search engine to find customer stories regarding actual pricing. In most cases, it is easy to find this information on websites and forums dedicated to particular brands or models. To do this, type in the model or make of a vehicle plus the words ‘enthusiast site’ or ‘enthusiast forum’ or similar phrases and see what comes up. Registration for most sites tends to be free, so feel free to inquire on a few sites regarding recent transactions. In most cases, auto enthusiast forum users are very friendly and willing to share their transaction price information. Knowing what people are paying for a particular vehicle is important because the MSRP is actually no different than allowing a salesperson to set a price of their liking.
Once armed with the MSRP and real transaction price, then it is time to look at the actual mechanics of the transaction. Any financing will require good credit, so it might be worth ensuring that a credit report is as clean as possible. Consumers are entitled to at least one free credit report per year, so take advantage of it. Also take advantage of sales by knowing when they happen. Big holidays and the holiday season are both times when incentives are offered to clear inventory, and cash back can certainly help impact the overall amount of money that will be paid before the vehicle is completely owned by the buyer. Note that some promotions are not necessarily promotions, but rather a hardening of the MSRP in order for salespeople to offer so-called incentives that only bring customers back to where they once were.
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