The average new vehicle price has risen steadily over the last five years, reaching a point where even a six-figure salary may not provide enough room when factoring in other living costs.Gone are the days of ultra-affordable cars, as consumers can expect to pay, on average, $50,000 for a new vehicle today.Despite the high cost of vehicles, there are a few tips you can use to your advantage to get the best deal, including which types of vehicles to look for and strategies for discussing the monthly payment with the dealership.
Avoid full-size SUVs Cash cows unlikely to see discounts If you’re hunting for a deal, stay away from full-size, body-on-frame SUVs, as they're unlikely to see many discounts right now.Large SUVs like the Chevy Tahoes, Ford Expeditions, and Toyota Sequoias of the world are a major source of profit for both automakers and dealerships.While there are numerous compact and mid-size crossovers, there are only so many large SUVs.
If someone needs a vehicle that seats seven and has a high towing capacity, it's a limited market owned by only a few automakers.Given the popularity of larger SUVs and the utility they offer, there is less incentive for those automakers and dealers to discount the “cash cow.” If you need a family vehicle without the cost of a full-size SUV, consider the Hyundai Palisade or Kia Telluride.As larger crossovers, they will offer up to 5,000 lbs.
of towing capacity, seating for eight (middle bench), and a 10-year, 100,000-mile factory powertrain warranty.Related I’ve spent 20 years in the auto industry—and still made this used-car mistake Didn't discover the issue until much later.Posts By Carl Anthony Look at "gently-used" vehicles Off-lease is a sweet spot Searching for an off-lease vehicle is a great way to get something nearly new for much less than the original MSRP.
Off-lease vehicles are generally in great condition, both cosmetically and mechanically, as previous owners were required to maintain them.Mileage will be low, and the technology in terms of the powertrain, infotainment, and safety will be just modern enough.Off-lease or gently used vehicles are likely to have a balance of their factory warranty and may even have additional warranty, such as certified pre-owned, which is manufacturer-backed (dealerships may also add their own supplemental coverage).
Overall, a used vehicle like this can be an excellent buy.For the deal itself, it’s usually a sweet spot in terms of price and interest rate.For the vehicle, it’s usually a sweet spot in terms of mileage, condition, and available features.
Incoming flood of EVs Off-lease EVs are another sweet spot Expect an ongoing flood of pre-owned EVs to hit the market throughout 2026.Previous incentives in 2023 helped move consumers into leased EVs, but as they now return en masse, they could sell anywhere from 40% to 60% off what they would have cost brand-new.Similar to a gasoline vehicle, an off-lease EV will be in good condition with low miles and have a balance of its factory warranty remaining, including for the battery.
Getting a good deal now on a pre-owned EV has the potential to lead to other savings, including no more oil changes and longer time between brake jobs, thanks to regenerative braking.The Ford Mustang Mach-E, Hyundai Ioniq 5, Tesla Model 3 and Model Y, and the VW ID.4 will be among the most common models coming off-lease.Related 3 insider tricks to get VIP treatment at any car dealership Red carpet treatment, even if you buy something used.
Posts By Carl Anthony Tips for shopping Focus on total purchase price For better or worse, consumers have been conditioned to think in terms of a monthly payment.As such, dealerships break things into monthly payments and stay fixated on that during the car deal.This isn’t to say dealers are intentionally trying to mislead you, rather a reminder to consider the total purchase price.
For example, if you tell a dealership you want a certain payment, they may extend the loan to 72 or 84 months to get it.While that is good in the sense that the monthly payment is lower, the downside is being attached to the loan for a longer period, balanced against the vehicle's depreciation as you drive.Here are a few tips you can try.
Negotiate the "Out-the-Door" Price: Only ask about the final price of the car you have in mind, including taxes and any other fees.Once that is determined, then discuss financing or your trade-in.Get Pre-Approved First: Visit your local credit union or bank before you talk to the dealer about financing.
It’s possible, in the end, that a dealership can match or even beat the rate from your bank, but it will give you a tool for negotiation.Even though vehicle prices are at an all-time high, use these tips to help you land a better deal and navigate the overall process of buying a car.By avoiding certain vehicles and seeking out others, and focusing on an open dialogue with the dealership about the total purchase price, you can take some of the stress out of buying your next vehicle.
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