How to Get the Best Deal on Your Next Car
Updated January 4, 2022 . AmFam Team
Shiny paint, gleaming chrome, and state-of-the-art high-tech amenities — hitting the car dealership lot can leave you feeling like a kid in a candy store. But when it comes time to make your purchase, all of the potential discounts and payment options can make it tricky to tell if you’re getting a good deal. We understand, and we want to help!
Here are four tips to consider as you purchase your next car.
Research Before You Visit the Lot
The process of finding and buying your car should begin long before you pull into the dealer's lot. Research is key — visit automaker websites as well as independent auto information sites such as Kelley Blue Book (Opens in a new tab), Edmunds.com (Opens in a new tab), and Cars.com (Opens in a new tab)to better understand the current market. Be sure that your research notes include the sticker price — also called the MSRP — and the invoice price. To calculate the sticker, go to the manufacturer's website and use the "build your own" to spec out the car. To calculate the invoice, go to an independent site and follow the same steps. (Note that this won't be the exact invoice since the price a dealer pays is dependent on many factors, but it will be close.)
Less formal research can be just as important. Pay attention to cars that catch your eye as you go about your day. If possible, perhaps even strike up a conversation with the vehicle’s owner. People may be more willing to chat than you presume and the perspective of another person on a vehicle they've spent time with will be invaluable.
Find All the Discounts You Deserve
Sometimes automakers advertise "cash back" deals. These rebates usually offer a choice between a discount on the purchase or a reduced interest rate. To see which is a better deal for you, try Bankrate.com's car rebate vs. low-interest calculator (Opens in a new tab).
Many buyers also qualify for "personal" discounts, frequently extended to, for example, former or current members of the military, students or recent college graduates, or members of certain credit unions, employment unions and wholesale clubs.
To find out which discounts you may be eligible for, visit the "offers" and “special programs” sections of automaker websites. Keep in mind, the personal discounts may be listed separately from rebates that are available to everyone, so be sure to spend some time poking around.
Know the Value of Your Trade in Advance
The amount you can expect to receive for a trade-in vehicle can vary according to the car's condition, mileage, and even color — not to mention by the inventory and policies of the dealer to which you choose to bring it. To get the most for your trade, spec out your current car's value on one of the independent auto information sites we mentioned above — Edmunds.com or Kelley Blue Book, for example. Be sure to calculate the estimated value on the condition you feel it is in and one level lower. This will give you a better idea of what is reasonable when a dealer makes an offer.
Negotiate Strategically
Once you've decided which car you’d like to buy, take a quick moment and do the math to determine how much you’re willing to pay. Your formula will look like this: Invoice Price – Cash Back Rebate – All "Personal" Discounts – Value of Trade = Final Sale Price
You may want to calculate a high and low to account for whether you opt for the cash back vs. cut-rate financing and the value you’re able to get for your trade. Once you have these numbers, you'll be better equipped to understand whether you’re getting a fair offer.
As you negotiate with the dealer, avoid talking about the monthly payment price — an easy way for dealers to extend the terms of the loan and, ultimately, charge you more for the car. Instead, focus on the overall sale price. If you name a price, name one close to the invoice number. Once you come to an agreement on that price then discuss the value of your trade. Once both are negotiated, you can go back to the new car sale price and list the cash back rebate and any other personal discounts you qualify for.
Taking these steps may not be quite as simple as walking into the first dealership you come across and paying sticker price, but with a little effort and a solid plan you'll be able to enjoy that new car with the peace of mind that it came with a fair price tag.
Did you find this article helpful? Get more tips and resources to guide you through the car-buying resources with our New Car Resources page. Check it out!
This article is for informational purposes only and includes information widely available through different sources.
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The Deadliest Driving Distraction: Texting and Driving
It should come as no surprise to you that texting is the most common distraction while driving as well as the most dangerous. It’s so deadly in fact, that it gets its very own section.
It’s easy for us all to see the dangers of texting while driving, but even with that knowledge, so many of us fall into the temptation of sending off a fast text message while behind the wheel. But even a quick text can have horrible consequences.
Just think, when you look at your phone, your focus is on the screen, not the road; one hand is off the wheel to hold your device, and your mind drifts to the message instead of the task at hand: driving safely.
Why texting is distracting
To put it into perspective, if you’re traveling at 55 MPH and you take your eyes off the road and onto your phone, you’ve traveled about 100 yards – the length of a football field! That’s quite a distance to cover driving “blind.”
The National Safety Council reports that one out of every four car accidents in the United States is caused by a distracted driver who was texting. They also reported that texting and driving is six times more likely to cause an accident than driving while intoxicated.
Let these driving facts be a wake-up call to the extreme dangers of texting while driving.
Is it Illegal to Use Your Phone While Driving?
The truth is that it depends on which state you live in. As of 2020, the Governors Highway Safety Association reports that there is a hand-held cell phone use ban in 22 states, with 48 states banning text messaging for all drivers. Find out the distracted driving laws for your state to ensure you’re following the rules of the road in your state.
It’s always important to know our state laws, and in your state there may very well be no law preventing you from texting while driving. However, for your safety as well as those in your car, and for anyone else sharing the roads with you, it’s best to stick with a firm “no phone use while driving” mentality.
Types of Distracted Driving
The first step to preventing distracted driving is understanding what it is. In a nutshell, anything that occupies your attention while driving is a distraction. Here are a few notable distractors that should be eliminated while behind the wheel.
Checking your GPS
When it comes to directions, we’ve come a long way from the world of fold-up maps. Today, everyone has a built-in navigation system in the palm of their hands: the smartphone. The only problem is that just one quick glance at your phone’s screen is all it takes for a costly mistake behind the wheel.
Your best bet is to leave your phone in your pocket or purse when driving. But if you must use your phone for directions, enable the voice feature so that you don’t have to look at the screen for every turn.
Sifting through your music device
Trying to find the right song for your road trip is just as dangerous as texting and driving. Your best bet is to pick a playlist prior to getting into your vehicle. Or listen to the radio. The key here is to keep your eyes on the road and not on your music device.
Checking social media
Instagram, Snapchat, Facebook, Twitter, you name it – all of them bide for our constant attention. Don’t fall prey to this when you’re driving. That post, tweet, or message can wait. Avoid checking social media when behind the wheel.
Eating behind the wheel
You may be a pro at eating your burrito on the go, but ingesting your lunch while driving is a big no-no. All it takes is one wayward waffle fry to take your attention from the road to your lap. And it’s not just the mess that distracts; it’s the smell, taste, you name it – that makes eating one of the most distracting things you can do while driving.
Other types of distracted driving
There are a few more forms of distracted driving that could cause an accident. If you’re in the driver’s seat, try to avoid these altogether:
- Taking selfies
- Talking on the phone
- Drinking coffee or another beverage
- Putting on makeup
- Using an app
- Loud music
Top 5 Ways to Prevent Distracted Driving
There are easy ways to prevent distracted driving. Try using making these five simple changes distracted driving safety tips to have a safer driving experience.
Use a text-blocking app
There are many apps available that block texts while driving. Several apps exist with different features, ranging from ones that completely block any incoming or outgoing texts while going a certain speed, to apps that will send a message saying you’re unavailable to respond to an incoming text. Here’s a list from DMV.org with great suggestions for apps to fight distracted driving.
Have a passenger navigate for you
If you’re driving with a passenger (of an appropriate age), hand the directions to them. Even a not-so-great navigator in the passenger seat is better than the person behind the wheel being responsible for both driving and navigating. If you’re driving by yourself, take the time to look at the directions before you set off. Then turn the volume up and let the AI lead the way.
Make music selection easy
Make multiple playlists that you can choose from before starting the car. If you really need to change it up, either pull over or wait for a red light. Set your presets to stations you already know you like. Hitting one button is better than cranking the dial until you find music you like.
Don’t text while driving
If you’re behind the wheel, just put the phone away. Social media can wait. It’s not going anywhere — that we can promise. Are the notifications too tempting? Turn them off! No comment or new tweet is worth the risk.
Eat at home or while stopped
If you’re in a rush and want to keep things moving, consider the hazards of driving while eating behind the wheel. Hopefully you can recognize that the risks outweigh the temptation, and you can wait until you get to your destination to eat.
How Does Distracted Driving Affect Insurance?
For starters, getting into an at-fault accident will almost always make your insurance premium go up, simply because your insurance company now deems you a higher-risk driver. Distracted driving is no exception. Even if you avoid an accident but you get a ticket for distracted driving, you’re susceptible to those increases in insurance.
Why does distracted driving increase insurance? For starters, you may be getting a discount for having a clean driving record. But if you get a ticket, such as for texting while driving, you may no longer be eligible for that discount, and you’ll notice an increase in your premium. Another reason your insurance might go up goes back to being a higher risk. If you’re guilty of distracted driving, an insurance company will consider you a high-risk driver (meaning you’re more likely to file a claim due to an accident) and they’ll set your premiums higher.
Many of the discounts that insurance companies give out revolve around rewarding drivers for having no claims and a good driving record in general. Don’t let distracted driving take away those perks!
Protect Yourself From Distracted Drivers on the Road
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