Buying a New Car? – Here's How to Save Money!

Let's face it, getting a good price on a new car and securing affordable financing can feel like climbing Mount Everest. Dealerships are pros at negotiation, and the financing process can be confusing. But don't worry, with a little preparation and savvy tactics, you can conquer these challenges and save some serious cash.

The Challenges of Car Buying:

• Information Overload: Between online reviews, manufacturer websites, and dealer promotions, it's easy to get overwhelmed. Sifting through all the information and figuring out what's accurate can be a real headache.
• Emotional Buying: That shiny new car smell and the excitement of the test drive can cloud your judgment. Dealers know this and often use emotional tactics to pressure you into a quick decision.
• Negotiation Anxiety: Let's be honest, negotiating can be intimidating. Many people feel uncomfortable haggling over price, especially when dealing with experienced salespeople.
• Financing Maze: Understanding loan terms, interest rates, and financing options can be confusing. Dealers often present multiple financing options, but it's crucial to understand the fine print before signing anything.
• Hidden Costs: The sticker price is just the beginning. You also have to factor in taxes, fees, and potential add-ons like extended warranties and paint protection, which can significantly inflate the total cost.

Conquering the Car-Buying Jungle: Tips to Save Money:

• Do Your Research: Knowledge is power! Before you even set foot in a dealership, research the car you want. Read reviews, compare prices online (sites like Kelley Blue Book and Edmunds are your friends), and understand the car's features and specifications. Knowing the market value of the car will give you a strong starting point for negotiation.
• Get Pre-Approved for Financing: Don't rely solely on the dealership for financing. Shop around for car loans before you visit the dealership. Getting pre-approved gives you leverage and can help you secure a lower interest rate. SCU Credit Union offers competitive rates, so check us out!
• Be Prepared to Walk Away: This is crucial! Don't get emotionally attached to a specific car. If the deal isn't right, be prepared to walk away. Dealers are more likely to offer better terms if they know you're not desperate.
• Negotiate the Price Separately: Don't discuss financing until you've agreed on the price of the car. This prevents the dealer from playing games with the numbers and confusing the price negotiation with the financing terms.
• Time Your Purchase: Buying a car at the end of the month, quarter, or year can often lead to better deals, as salespeople are trying to meet quotas. Also, consider buying mid-week, as dealerships tend to be less busy.
• Beware of Add-ons: Dealers often try to sell you add-ons like extended warranties, paint protection, and rustproofing. These are often overpriced and unnecessary. Do your research and decide beforehand which add-ons, if any, you actually need.
• Read the Fine Print: Before signing any paperwork, carefully review all the terms and conditions. Don't be afraid to ask questions if you don't understand something.
• Consider Used Cars: If you're on a tight budget, consider buying a certified pre-owned car. These cars are typically in excellent condition and come with warranties, offering a good balance between price and reliability.

Buying a new car can be exciting, but it's important to approach the process strategically. By doing your research, getting pre-approved for financing, and being a savvy negotiator, you can save thousands of dollars and drive away with the car of your dreams without breaking the bank. Happy car hunting! 

We love helping members buy new cars, stop by one of our branch locations for assistance or reach out to our member service call center at 877-661-3300.