The Cost of Owning a Car is Different from One Vehicle to Another

While we’re on the subject of cost, let’s take a moment to consider the ongoing costs of owning a car.

The Automobile Association of America (AAA) estimates the annual cost to be $8,469, or $706 per month. That’s just an average.

It ranges from $6,354 per year for a small sedan, to $10,054 per year for a pickup truck. Those figures are comprised of the following expenses:

• Depreciation (this is how much your car drops in value each year you own it)
• Maintenance and Repair
• Fuel
• Tires
• Car Insurance

All except car insurance will be approximately the same across the country. Car insurance varies widely by state.

For example, while the average car insurance cost nationwide is $1,318 per year, it ranges from a low of $864 per year in Maine to a high of $2,394 in Michigan. Those are just averages.

Premiums can also vary considerably based on the type and cost of the vehicle you’re purchasing. That’s why it’s important to get a car insurance quote from your insurance carrier before buying a new car.

Trading in a small sedan for a pickup truck could cause your insurance to increase by more than $1,000 per year.

You’ll need to know that before you make the purchase.

8. Timing is Everything – When to Buy a Car

Now that you’re prepared to get a good deal, by the numbers, let’s about when you should make your purchase.

This is super critical.

There are certain times of the year, or even the day of the week when you’re more likely to get a better deal.

Here are a few of the best times to buy a car:

The end of the model year.

Car manufacturers work on a fiscal year that ends August 31. That’s when they change their model years.

By the time August hits, they’re looking to get last year’s inventory off the lots. They’ll often discount those cars to move them quickly.

After all, they need room for the new models. You can usually find good deals straight through October, which is when they’re trying to close out the last of the older models.

Holidays.

Dealers often run BIG sales on certain holidays, particularly Memorial Day, Labor Day and Independence Day. Black Friday is another big one.

It has two advantages, one is that it falls on the Thanksgiving holiday weekend, and the other is car dealers are competing with Christmas shopping for business.

But the biggest holiday advantage may come between Christmas and New Year’s.

At this time of year, holiday celebrations and travel are crowding out car buying. At the same time, dealers are concerned with meeting year-end sales goals. Dealer bonuses may even hinge on them meeting certain sales levels.

This is a time of dealer desperation, which is a big advantage for you as a buyer. But what if you need one sooner and it’s not a holiday season?

When should you go?

Weekdays.

More people shop for cars on weekends, because they work during the week. Dealers are usually more anxious to make sales on weekdays.

Mondays and Tuesdays are particularly good days because they’re quiet.

But this brings us to the next point… you can REALLY save…

When you don’t need a car.

If you buy when you need a car, you might be desperate. But if you buy when you don’t need one, you’ll have a stronger negotiating position.

You’ll be thinking with dollars and cents (sense?), not just to fill an immediate need.

9. Leave Your Emotions at Home

This can be a tough one to pull off. After all, buying a new car is largely an emotional venture.

We’ve all heard the saying you are what you drive, and that affects the car buying decision.

It’s similar to buying a house – you’re not just buying a thing, but something that in some way defines both you and your lifestyle.

You have to detach yourself from that. After all, buying a car is first and foremost a business transaction. If your emotions are in control – i.e., I MUST have THIS car – your business sense isn’t. That increases the possibility of making a bad deal many times over.

After the new car high wears off, the reality of the car loan will set in. Only then will you know if you actually made a good deal. The time to make that happen is when you buy the car.

And that’s why you have to leave your emotions at home when you do.

Car dealers know how to exploit emotions – in fact, they’re banking on it. (Good pun, right?! I’ll see myself out.)

They can use your emotions to convince you to pay more for the car than you should, take options you don’t need, or even to put you into an upside-down loan.

None of that can happen if you approach the purchase as a business deal.

You may have to leave a thing or two on the table, but you’ll like yourself a lot better a few months later if you do.

10. Create Competition – Let the Dealer Know You’re Working With Other Dealers (Even If You’re Not)

Never go to a dealership hinting you need to buy a car right now, and from this dealer.

If you do, you’re setting yourself up to get your pocket picked. Instead, make it clear to the dealer that you’re shopping.

Drop a name or two for added effect. 🙂

The point is to make sure the dealer knows he’s in competition with other dealers for your business. They’ll respect you more, and give you a better deal.

10. Go Easy on the Options and Add-ons

Dealers can quickly raise the price of a car with options and add-ons.

Be careful with this. Just as you never want to over-improve a house, you don’t want to overload a car with too many options.

Not only will they raise the price, but they may not increase the resale value of the car by the same amount. Most cars today have options packages that have most of what you need.

It may be okay to add a couple more as preferences, but don’t get carried away with it. Also, be aware there are options and add-ons that either don’t add value, or you plain don’t need.

Examples include credit life insurance, extended warranties (beyond those offered by the manufacturer), special car colors or editions, and various treatments, like undercoating, rust protection, sealants, and fabric protection treatments.

All can run up the cost of a car quickly, while adding very little value.

12. Bring Help

Some people are born negotiators, but it’s probably safe to say most aren’t.

If you aren’t, the workaround is to bring a negotiator with you 。

This is perfectly acceptable. You can bring anyone you want to a car purchase. You may also want to bring someone who’s knowledgeable about cars, especially if you aren’t.

The basic idea is to make sure you’re not going into the dealership alone. After all, the salesperson you’re dealing with won’t be alone.

She’ll have the support of her sales manager, finance manager, other salespeople, or anyone else she needs to make the deal happen. If you have a more passive personality, you’ll be outnumbered and overwhelmed.

By bringing one or more of your own people, you’ll level the playing field. You can bring a strong negotiator or car expert as an advisor, but don’t be afraid to bring other people just because.

The point is, the salesperson has a team, and you need to bring your own.

If nothing else, they’ll be there for moral support.

But more important, they’ll be there during the tense negotiation phase. They may even be there to keep you from making a bad deal.

If the car buying/negotiating process has any potential to make you go weak in the knees, this is a step you can’t overlook.

There really is safety in numbers, even and especially when you’re buying a car.

13. Never – Ever – Be Afraid to Bug Out

This could be the most important car buying strategy of all.

Never feel obligated to go through with the car purchase (some people do).

If you don’t like the deal being offered, or you feel uncomfortable for any reason, simply get up and leave.

Never allow a car dealer to intimidate you into taking a deal, or make you feel as if you’ll never get a car if you don’t buy this particular one.

There are more than 18,000 car dealerships in the US, so you don’t need this dealership, or this salesperson. They actually know that, but by getting up to leave, or threatening to do it, you’re letting them know you know it too.

Some dealerships and salespeople are experts at getting you to think you need them more than they need you. But the exact opposite is much closer to the truth.

This is why it’s best to shop when you don’t need a car. You can tell them you’re here to gather information, and you’re not buying a car today, period.

You can now take the decision home, sleep on it, and remove buyer’s remorse from the equation.

Final Thoughts On Getting The Best Deal On A New Car

Maybe you can’t use all these strategies to buy your next car. No problem – using just a few can make a real difference.

You’re not just looking to save money when you buy a new car, but to get the best car for the money you’re paying.

That should always be the ultimate goal.

Unfortunately, when you buy a car from a dealer, you and the dealer are natural enemies. You want to buy the best car at the lowest price – the dealer wants you to pay the highest price.

Your job is to make sure that doesn’t happen, and that’s why you need to be prepared ahead of time.

Pick the best time to buy a car, do your research, and get a screamin’ deal 。

You’ll be happy you spent the time, and not the money.