Looking to buy a new car? Here are some tips for getting the best deal
BOSTON — With some people getting tax refunds this season the extra cash could go towards buying a new car.
Even in a seller's market, there are still a few things you can do to get the best possible deal on your next set of wheels.
First, you'll need to think about how you plan to pay for it, either buying it outright or financing it.
"You want to get pre-approved for a loan if you need a loan — that way you've got a baseline to work with when you get to the dealer," said Benjamin Preston, who cover autos for Consumer Reports,
If you're financing, he recommends putting down a high amount.
"When you're financing, especially, you want to put down as much money as possible because that lowers the amount that you'll owe. And then you also want to keep the term as short as possible," he said.
As for loans, Preston explained that it is very common for people to take out six-or-seven year loans, but he advised borrowers to think about the bigger picture first.
"If you think about how that spreads out over time, and you're paying interest on that, and the value of the car is declining simultaneously that could be a problem in a few years when the value of the car is less than you owe," he told WBZ-TV.
With limited availability, higher prices, and higher interest rates on loans, Preston said regardless of whether the car is new or used it's important to do your research.
"There's a shortage of new cars, the chip shortage is still a thing," Preston said, adding that used car prices are still relatively high, too.
Preston also advised not counting out domestic brands because you're likely to get a better deal on those.
Last but not least, when you do find the car you like, whether it's new or used, don't be afraid to negotiate on the price.
You might not have as much leverage in this market, but you still have to be ready to make your move.
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