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5 tips to get the best deal on a new car in 2022 | The Murray Valley Standard

5 tips to get the best deal on a new car in 2022 |  The Murray Valley Standard
Getting pre-approval on a car loan before visiting car dealerships will give you more leverage to get a good deal on a new car. Photo: Shutterstock.

Story in collaboration with Savvy

Buying a new car, now in 2022, is a very different experience than car shopping in previous years. Shoppers have less leverage to get a good deal due to supply chain issues and high demand where cars basically sell themselves. But there are still things shoppers can do to pay less for a new car.

Get pre-approval for finance

Getting pre-approval for a car loan has many advantages. You can lock in the best interest rate after a thorough comparison, saving you money over the life of the loan. The peace of mind that comes with knowing you’re getting the best interest rate is priceless.

It also puts a cap on the amount you can spend on a car, meaning you’re less likely to make hasty decisions when you go to the dealer. Car salesmen are experts at sweet talk, and with the high car prices, people are likely to get caught paying more than they can afford.

Customers should also avoid dealer financing as the rates offered are rarely the best available to you.

Pre-approval gives you leverage to negotiate a better deal. By getting pre-approved for finance, you show car dealers that you are serious about buying, and the prospect of a quick process is very appealing to them.

To get the deal done quickly, car salespeople often give pre-approved buyers their best deal up front, which means more transparency for you and less negotiation.

If you have previously had problems obtaining pre-approval due to poor credit, consider bad credit car loans

Downgrade expectations

If you’ve got your heart set on a particular color or optional extra, now might be a good time to reassess your need for it. If you pass up a good car deal because it doesn’t tick all your boxes, it could mean you’ll pay more later.

Go through your checklist of things you want in your ideal car and try to get rid of the unnecessary items. It could save you hundreds, if not thousands, if you’re considering buying a car in a less popular shade. But it still gets you where you need to go.

You may have set your sights on the top-of-the-line model, but by lowering your expectations to a base or mid-range model, you’ll still get the car you love, just without the added luxury and high price tag.

Consider buying interstate

Some states typically have a lower price for certain cars compared to other states.

According to PriceMyCar.comNew South Wales was the cheapest place to buy a new car in 2019, closely followed by Victoria.

If you’re searching online, it’s worth shopping around and setting your location parameters to include neighboring states.

If you come across your car of choice at a lower price in another state, it’s as simple as getting a quote to have the car shipped to you, and doing the math to find out if that’s totally cheaper than buying it locally buy a car.

Do your due diligence by checking the responsibilities you assume when: buy interstate car, such as changing your registration. These vary from state to state.

Be informed

Be aware of the condition of the vehicle and the on-road and maintenance costs.

Consumers often make the mistake of thinking that car costs only extend to the purchase price. But then they run into financial trouble when they realize there are a lot of costs down the road. Factor in car registration, stamp duty, and any existing repairs that need to be done, especially when purchasing a used car.

Ask a qualified mechanic to perform a purchase check, to make sure everything is in good working order. Also look in the maintenance history book, this can affect any existing warranty on the car.

Research the car you’re considering thoroughly, and when a good deal turns up, you’ll have the confidence to strike. Knowing the prevailing price on each specific badge and the year of your favorite car model will work in your favor. If you are well informed, you are less likely to pay too much.

Shop

Visit multiple different dealerships, speak to different sellers, and ask any questions that come to mind about the cars you’re considering.

When you have first-hand knowledge of the different models, years and badges you are interested in, you have more leverage to negotiate.

Some auto dealers fail to properly price models depending on where they are in the badge hierarchy. By shopping around and considering different price points, you’ll be better equipped to spot a good deal and less vulnerable to scams, especially in today’s auto market.

Story in collaboration with Savvy