How to save money on a new car

A person shopping for a good bargain generally immediately considers used vehicles. Someone who is planning to purchase a late model crossover will almost certainly consider buying a used Nissan Qashqai or an Astra before thinking of their new counterparts. If the decision to go new is reached though, there are several things a car shopper can do to maximize the chance of getting the best deal possible.

First, the reason bargains might exist for a new vehicle. The first is that an entire system is reliant on people buying new cars. A man who purchases a used Nissan Qashqai certainly provides profit for someone, but a man who buys a new one provides profit not just to the person who sold it, but to everyone back to the people who produced the raw materials that the vehicle was manufactured from. This long chain of people whose livelihoods rely on new cars being sold means there is great pressure on car dealers to actually sell them.

The second major reason a bargain might be found on a new Vauxhall instead of a used Vauxhall Astra is supply and demand. The popularity of mid-range vehicles tends to be geographically connected. Two cities a handful of miles apart could have massively different prices for the same model simply because people in one city are buying the car while people in the other city are buying a different car. By shopping widely, a buyer can sometimes find a bargain in a city where his or her chosen vehicle is simply less popular than a competing model.

The last reason that a bargain might be possible for new vehicles is timing. The car dealer world runs by a monthly calendar. Salesmen are compensated and receive bonuses based on how many cars they have sold in a given month. Even the dealership itself often receives a bonus from the manufacturer based on the number of vehicles that it has sold in the month. Under certain conditions, simply moving one more car off the lot will bring a much bigger return than the profit from the car’s sale. In these cases, dealers facing the end of their month are often willing to be extremely flexible simply to add one more sold car to the books for that month.

A person buying a new car who wants a real bargain should do three things:

Look for manufacturer incentives meant to stimulate sales on a given car model. Shop widely to find a dealer who simply wants to free up inventory space by selling a vehicle unpopular in the area.
Shop at the end of the month when bonus money might be more important than the profit on the individual sale.

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