Save thousands of dollars when you buy your next car. Use this method to shave a significant amount off the price of a new car. And, if the purchase will be financed, the savings will be even greater since the loan will be smaller. Here are ways to buy a new car at the best price.

THE METHOD

Research the various models of vehicles until you know exactly what you want. While researching, check the history of major maintenance problems, recalled items, and average repair costs for your preferred models. Call your insurance agent and ask for a quote on your two favorite models. Even though they may be similar in appearance and features, the insurance premium could be vastly different due to theft rates or a poor safety record. Once you have narrowed your choice to one model, write a very detailed list that includes:

• make and model
• dealer options (for example sun roof, upgraded upholstery, etc.)
  
• interior and exterior colors
  

Take this list to the loan officer at your credit union to get a pre-approval amount. This will put an ace in your hand because you will know that you can buy a car and also how much additional money you will need for the down payment and loan fees.

Make a list of the new car dealers within 50 miles of your home. Fax or email the list to the dealers (addressing each one individually) requesting a formal quote with their best price including dealer prep. Also, request that they tell you whether that particular model is available on the lot or, if not, then an approximate delivery date. Do not provide any personal information such as having a trade-in vehicle or being pre-approved. You want a straight price for the car before any adjustments and the only way to get that is to refuse to provide personal information. Include your full name and address as well as your email address. However, do not include your phone number to ensure that their response will be in writing. A verbal agreement is non-binding and sometimes just a ploy to get you into the showroom. If an enterprising salesperson should obtain your phone number, then insist that all responses must be in writing and hang up.

While you are waiting for the offers to arrive, research the value of your trade-in vehicle if there is going to be a trade-in. Also, spend a few dollars and have it professionally cleaned, washed, and waxed. If necessary, get an oil change and a new air filter.

As you receive each offer examine it carefully. Make sure that it includes all of the options that you listed as well as your chosen color. Be absolutely certain that dealer prep is included as this can add a significant amount to the price of a new car. Some dealers will include tax, tag and title in the quote but others do not so you may need to adjust the amount of the quote to include these items. Also, some quotes will have a deduction for a trade-in as a sneaky way to appear to have a lower price.

If you consider all of the offers to be too high, then send a second fax or email to the dealer thanking him for his quote but you will be shopping around for a better price. Many dealers will respond with a lower quote.

If you consider the lowest offer to be a good price, then contact the dealer to make an appointment. Take your copy of the quote with you.

Go directly to the business office and insist on speaking with the business manager. Thank him for the quote on the new car and then ask what additional amount he will deduct for your trade-in vehicle. If the price seems reasonable, then tell him that you would like to close the deal. Otherwise, be honest with him and say what approximate amount you had hoped to get. This is the time that you mention you are pre-approved. Using this ace with the business manager could allow you to buy a new car at the best price.

Here are some other hubs which may be of interest to you: