{"id":2888,"date":"2013-04-23T20:39:51","date_gmt":"2013-04-24T00:39:51","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=2888"},"modified":"2013-04-23T20:52:06","modified_gmt":"2013-04-24T00:52:06","slug":"11-ways-women-can-save-money-on-a-new-car","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=2888","title":{"rendered":"11 Ways Women Can Save Money on a New Car"},"content":{"rendered":"

\"next-ave\"<\/a>It has been 10 weeks since I bought my Twilight Blue 2013 Subaru Outback 2.5i Limited. Even the color sounds dreamy. I\u2019m still a little giddy about driving a new car.<\/p>\n

Even better, I\u2019m very proud of the price I paid for my Subaru. I got the car for $4,250 below sticker price, which was the result of my research and dealmaking. I\u2019ll share my tips to help you drive home a great deal on a new car in a minute.<\/p>\n

The Truth About Female Car Buyers<\/strong><\/p>\n

I shop for my cars myself, without my husband. That\u2019s actually not too unusual for women. Forget about what you\u2019ve read about how car dealers rip off our gender because we\u2019re incapable of negotiating smart deals. Not true.<\/p>\n

(MORE:<\/strong>\u00a0Best Ways to Save Money and Stay Safe in 2013<\/a>)<\/p>\n

Here\u2019s what is true: Women buy just over half of all cars sold in the United States and take part in 80 percent of all family car-buying decisions. And women car buyers do more research than men, generally speaking.<\/p>\n

We\u2019re also substantially more practical in our vehicle choices. Women focus on safety and dependability, according to the experts I canvassed. That sounds a little like the way we approach investing, doesn\u2019t it?<\/p>\n

11 Tips for Car Shopping<\/strong><\/p>\n

OK, now onto my tips. Here are 11 ways to get the best deal on a new car now:<\/p>\n

1. Time your purchase.\u00a0<\/strong>As a rule, you can save more by buying at the end of the month.<\/p>\n

Auto salespeople generally operate on a quota system, collecting bonuses from the dealership and often the manufacturer if they hit their mark for the month. So if they\u2019re running short as the calendar is about to flip, they\u2019re motivated to get the sales manager to knock down the price of a car when negotiating with a customer.<\/p>\n

2. Consider purchasing one of last year\u2019s models.<\/strong>\u00a0Now that 2014 lines are making their way into showrooms, carmakers are cutting prices on their 2013 stock and are more open to negotiations so they can get them off the lot. You\u2019ll still be buying new, just not\u00a0new<\/em>\u00a0new.<\/p>\n

3. The Internet is your friend.<\/strong>\u00a0It’s so easy to research car prices online. I strongly suggest you spend some time trolling the leading auto websites. They\u2019ll tell you what you can expect to pay where you live, right down to your ZIP code. (Side note: You may want to step a little beyond your immediate locale when buying. Urban dealers often offer lower prices than suburban and rural ones.)<\/p>\n

Some of the best auto pricing research sites are\u00a0Autotrader.com<\/a>,\u00a0CarsDirect.com<\/a>,CarGurus.com<\/a>,\u00a0Edmunds.com<\/a>,\u00a0Kelley Blue Book<\/a>\u00a0and\u00a0TrueCar.com<\/a>.<\/p>\n

When I shopped for my new car, I started at the main Subaru site to see which models and options were available, then I visited the sites of local Subaru dealers to browse inventory. Then I headed to Edmunds.com to get what the site calls the \u201cTrue Market Value\u201d price (or TMV). That\u2019s the number Edmunds derives by using actual sales figures to reveal the average price buyers are paying in your area.<\/p>\n

(MORE:<\/strong>\u00a0New Auto Technology Helps Buyers With Limitations<\/a>)<\/p>\n

4. Request Internet pricing from local dealers.<\/strong>\u00a0Email a handful of dealerships to get a range of their \u201cbest\u201d prices for the car you have in mind. I contacted six dealers online and was surprised to find a $3,000 gap between the highest and lowest price quotes. So I took the lowest offer and e-mailed the other dealers to see if they\u2019d beat it. One did; the others offered to match it.<\/p>\n

Internet price in hand, stop by the closest showroom or the one that popped you the lowest figure and take a test drive. Don\u2019t feel obligated to buy there, though.<\/p>\n

I felt uneasy with the salesperson who let me go for a spin, but then kept me waiting for nearly an hour while he talked to his manager about the price. As I was leaving, he ran after me, sticking a Frisbee through my car window for my dog, who I\u2019d brought along, asking what he had to do to get me in that car today. Too late. I smiled and drove on.<\/p>\n

5. Develop a relationship with Internet salespeople.\u00a0<\/strong>I exchanged emails with one of mine for nearly three months before I made the final decision to buy \u2014 from him.<\/p>\n

As I shopped, I\u2019d send him the prices I was being quoted and bounce questions about features, options packages and colors. One note he sent certainly helped me save money. Here\u2019s what he wrote:<\/p>\n

Subaru never has rebates, but they have something called \u201cdealer cash\u201d that Subaru gives to all dealerships and it\u2019s up to them to pass those savings onto the customer. So when shopping for a new Subaru, keep in mind that the dealerships have $1,145 to play around with under invoice if they choose to give it to you.<\/em><\/p>\n

6. Set your number.<\/strong>\u00a0Figure out what you can really afford to spend and hold to it.<\/p>\n

After looking at the Edmunds TMV price and getting quotes from six dealerships, I came up with how much I was willing to pay, including all the miscellaneous fees that would come with the purchase \u2014 things like title fee, dealer processing charge, temporary tags and sales tax.<\/p>\n

Don\u2019t forget about those related expenses, since they can be substantial (think of them as the closing costs for a car). Mine amounted to about $2,000.<\/p>\n

7. Scour for rebates, cash-back programs and low interest rates on car loans.<\/strong>Edmunds.com\u2019s\u00a0Incentives and Rebates<\/a>\u00a0section can tell you about many rebates, cash-back programs and cut-rate financing dealers are offering. At Cars.com, you can find what the site considers the latest\u00a0top 10 cash-back offers<\/a>; some are for discontinued 2012 models.<\/p>\n

Just keep in mind that auto incentives don’t apply to all models. You\u2019ll need to read the fine print online.<\/p>\n

Also, your credit must be top-drawer to get a 0 percent loan or other low-rate financing. If your credit is good, you shouldn\u2019t need to pay more than about 3 percent interest for a car loan these days, whether you finance through a dealer, bank or credit union.<\/p>\n

(MORE:<\/strong>\u00a04 Signs That Your Driving Skills Are Declining<\/a>)<\/p>\n

8. Before making an offer, contact your car insurance agent to find out what your premiums might be.\u00a0<\/strong>You might find they\u2019re so steep you\u2019ll want to find an alternative model.<\/p>\n

It\u2019s also a good idea to know the cost of car insurance in advance, so you can factor that amount into your purchasing equation.<\/p>\n

9. If you\u2019ll be trading in, mum\u2019s the word.\u00a0<\/strong>Wait until you\u2019ve come to a final price on your new car before telling the salesperson you want to trade in your old one. It\u2019s important to keep these transactions separate. Otherwise, the dealer may jumble the two and lead you to overpay for the new car without knowing it.<\/p>\n

For a sense of what your current car is worth, go to the\u00a0Kelley Blue Book site<\/a>\u00a0for a range of its estimated value. Many dealers are paying on the high end of the KBB range now because used cars are in demand.<\/p>\n

10. Ask for a deal on service and maintenance for your new car.<\/strong>\u00a0You may be able to get free oil changes for a year or discounted routine maintenance.<\/p>\n

11. Don\u2019t let yourself get pressured to buy extras you don\u2019t want or need.<\/strong>\u00a0Most car dealers work on commission, so the more you pay, the more they make. That\u2019s why you may be urged to buy things like an extended warranty, road service, wheel and tire protection or rust protection.<\/p>\n

If a salesperson learns that you won\u2019t be financing \u2014 another source of profit \u2014 he or she may then pull out the stops to sell extended warranties and such. Stand your ground if you don\u2019t want them.<\/p>\n

I believe in Subarus, I\u2019ve owned three of them, so I politely turned down an extended warranty.<\/p>\n

Haggling Isn’t Fun<\/strong><\/p>\n

One last thought: The car-buying negotiation process can be grueling. After my purchase was finalized, I didn\u2019t even get a handshake from the finance guy when I left the dealership.<\/p>\n

But I didn\u2019t take it personally. I drove away a winner.<\/p>\n

 <\/p>\n

posted by\u00a0Kerry Hannon<\/a>,\u00a0More by this author<\/a><\/p>\n

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\"KerryKerry Hannon has spent more than 25 years covering personal finance for Forbes, Money, U.S. News & World Report and USA Today. Her website is\u00a0kerryhannon.com<\/a>. Follow her on Twitter\u00a0@kerryhannon<\/a>.<\/p>\n<\/div>\n

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