Spotting a good deal when shopping for a car requires research, patience, and knowing what to look for. Here’s a step-by-step guide to help you find the best value:
1. Know Your Budget
Decide how much you can afford (including down payment, monthly payments, insurance, taxes, and maintenance).
A general rule: Car payments should not exceed 10-15% of your monthly take-home pay.
2. Research Fair Market Prices
Use tools like Kelley Blue Book (KBB), Edmunds, or TrueCar to check the average price for the car you want (new or used).
Compare prices across different dealerships and private sellers.
3. Check Vehicle History (For Used Cars)
Always get a Carfax or AutoCheck report to check for:
Accidents or flood damage
Odometer fraud
Number of previous owners
Maintenance records
4. Look for Discounts & Incentives (New Cars)
Manufacturer rebates (e.g., cashback, low APR financing)
Dealer promotions (holiday sales, clearance events)
Loyalty or military discounts (if applicable)
5. Negotiate the Out-the-Door Price
Dealers may focus on monthly payments—insist on negotiating the total price first.
Watch out for unnecessary add-ons (extended warranties, paint protection, etc.).
6. Consider Certified Pre-Owned (CPO) Cars
CPO cars are used but inspected, refurbished, and backed by a manufacturer’s warranty (often a better deal than new).
7. Test Drive & Inspect Thoroughly
Check for:
Engine sounds, braking, steering responsiveness
Tire condition, fluid leaks
Electronics (AC, infotainment, lights)
For used cars, get a pre-purchase inspection by a mechanic (~
100
−
100−150).
8. Compare Financing Options
Get pre-approved for a loan from your bank/credit union (often better rates than dealer financing).
If using dealer financing, compare their APR with outside offers.
9. Watch for Red Flags
Too-good-to-be-true prices (could be a scam or salvage title).
High-pressure sales tactics (walk away if they rush you).
Hidden fees (doc fees, dealer prep charges—ask for a breakdown).
10. Time Your Purchase Right
End of the month/year: Dealers may offer discounts to meet quotas.
Holiday weekends: Memorial Day, Labor Day, Black Friday often have sales.
New model releases: Previous-year models get discounted.
Final Tip:
Don’t rush! A good deal is one that fits your budget, meets your needs, and comes from a trustworthy seller.
Would you like help finding the best type of car for your lifestyle?