12 Ways to Receive Discounts When Buying a New Car
New cars are full of bells and whistles, and can cost upwards off–well, a lot of money. Not everyone is strapped with cash, so when it comes to buying a car, many people can’t afford the vehicle they want or need. But with some research and planning, there are ways you can knock down the price of that puppy to something within your budget.
Here are 12 common ways of receiving discounts off the price of a new car. Not every dealership offers each of these perks, so call around and plan accordingly.
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1. Trade Your Vehicle: The easiest way to save a couple hundred or thousands of dollars when buying a car is to bring something to the table that the dealer will offer you money for. Case in point: trading in your current, used vehicle to them. Not only does this knock some money off your purchase, it also allows you to easily ditch your previous ride.
2. Student Discount: High school and college students need all the financial bonuses they can get, especially with the debt they’re racking up, and car dealerships are typically glad to offer minor discounts to current students with valid IDs.
3. Military Discount: If you’re active military personnel or are a veteran, nearly all dealerships will probably offer you a respectable discount in honor of the service you’ve done for your country.
4. Employer Program: Certain government organizations and corporations have special deals with OEMs–and sometimes local dealerships–that hook employees up with special rates on new cars that aren’t offered to the general public. This also goes for educators in some cases.
5. OEM Incentives: Seasonal and monthly discounts on certain models result in temporarily lower costs on new cars to encourage buyers like you to take advantage of the deal. Some automakers even offer secret, unadvertised “rebates” you need to ask for.
6. Dealer Sales: Yes, these are the perks that are wildly and rambunctiously advertised on TV commercials, declaring special financing, cash discounts, and/or added service perks to ensure their inventory keeps moving.
7. Loyalty Bonus: If you already drive the same brand of vehicle that you’re going to the dealership to buy, ask about receiving a loyalty bonus that knocks a couple bucks off the new car’s price to reward for your commitment to the brand.
8. Competitor Bonus: If you’re ditching the brand you’re currently driving and want to switch to a different one (like leaving Honda for Hyundai), some automakers or dealerships will toss in a discount to tempt you to sign with them instead.
9. Pay Upfront: While this isn’t nearly as widely offered as it used to be, some dealerships (particularly homegrown, used ones) will sell you a car for a little less if you pay the entire cost upfront in cash rather than financing. These days though, some dealerships may actually do the opposite–be more flexible on the price if you agree to finance.
10. OEM Clubs: Certain luxury brands have special clubs that people can buy annual memberships in. While there’s a minor cost for being part of these select groups, members are offered substantial discounts on the OEM’s vehicles that outweigh the membership fees.
11. Credit Union: Certain credit unions have agreements with OEMs to offer its customers special financing or prices on vehicles. Ask your credit union if they offer special programs like this, or call around your neighborhood to join one that does offer this option.
12. Negotiate: When it comes to the bottom line, it’s ultimately up to your as the customer to negotiate the best price on the vehicle you will be buying, doing your research and not giving in until you strike a suitable bargain.
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