If you’re keen on buying a new car this year, be prepared to pay a lot more.
Inflation, spare parts shortages and the economic recovery have caused prices to skyrocket.
Consumer reports saw the Jeep Compass sell for 15% more than the Manufacturer’s Suggested Retail Price (MSRP), the Chevrolet Silverado 2500 at 17% and the 2021 Kia Telluride at 18%. This means that some buyers pay thousands of dollars more than the sticker price!
Consumer reports says your best bet is to pick a model that is not so in demand. And when you’re ready to take on a salesperson at a dealership, be ready to negotiate.
Let the seller know that you have researched the transaction price for the car and what level of trim you want. This means that you know approximately what the dealer paid for it and have already calculated what you are willing to pay.
If the seller can meet your target price, let them know that you will be ready to buy immediately and if not, you plan to visit other dealers.
The seller will try to focus on your monthly payment, but will insist on negotiating one thing at a time. It’s only after you’ve priced your new car that you can start discussing a trade-in or financing.
Speaking of trade-in, because the used car market is also tight, your old car will probably never be worth more than it is now. There is no reason why a dealer should not at least give you their wholesale value for a trade-in fee.
But if you are offered a price that is within your target range, you should probably take it as inventory continues to be low and you might not find the car you want – or a better deal – at another dealership. .
Consumer reports says if the trade-in discussion gets too heavy but you’re not ready to opt out of the new car deal, you can still sell the car elsewhere, including online dealers like CarMax, Carvana and Tred.