For those of you looking to take advantage of this year’s tax deductions for buying a new car, Smart Money has a few tips to save you even more money. They list five suggestions for getting the best deal on a new car as follows:
1. Wait until December. Unless you’re in a rush to buy a car, you’re better off waiting until the last month of the year, when dealerships will try to unload their old inventory with new incentives.
2. Improve your credit score. To get approved for the most affordable car loan, borrowers will need a FICO credit score of at least 750
3. Don’t rely on used cars for value. We typically associate used cars with cheap prices, but many used cars for sale are appreciating in value.
4. Consider which models are gaining popularity. Buyers should keep in mind that as a particular model becomes more popular, dealers may have less motivation to offer competitive pricing.
5. Compare buying vs. leasing
We’ve heard that the time period between Thanksgiving and the end of the year is a virtual ghost town in car dealerships as consumers are too busy doing their holiday shopping to buy cars. Low traffic = great discounts for those of us needing/wanting/able to buy in this time period.
Combine all these tips with some tried and true ways to save when buying a car, the aforementioned tax incentives, and perhaps a discount for paying in cash, and you should be able to drive home a real bargain this year.
How to Get the Best Deal on a New Car [Smart Money]