Car Manufacturers are Cutting Prices as Competition Heats Up
Are there real ways to save hundreds, maybe thousands, on your next ride? Yes, but there’s something you should know first:
A new car doesn’t cost as much as you think.
Many people still rely on TV advertisements, dealership stickers, and haggling with salespeople to gage how much a new car will cost. But times have changed. You can now find a new car for much cheaper.
The reason? Car manufacturers want your business. And the only way they can convince you to buy their new cars is by getting your attention, by standing out from the rest of the competition.
The best way for car brands to win your attention is by lowering their prices. This often creates a chain reaction where one manufacturer after another follows, ultimately saving car shoppers big in the process.
Remember, the car companies need your money, so of course they’ll do what it takes to get it – even if that means chopping off a few thousand dollars.
Right now, automakers are even more willing to drop prices and offer discounts. Car companies need to make a sale. They need you to buy.
Americans aren’t buying cars; sales are slowing. According to USA Today, new car sales have dropped more than 4% every month since December 2017. Last year’s models are still sitting on dealership lots across the country, and new models are arriving soon.
There’s a host of new cars that are released each year, but there’s limited space at every dealership – so what do you think happens when lots get full? What do dealerships do if they can’t move all of that inventory? Companies are prepared to lower prices and offer better customer incentives.
When sales slow and new cars sit unsold, dealerships drop prices. They become more willing to offer incentives: rebates, discounts off the sticker price, low- or no-interest financing. If they need to make sales, dealerships will even offer cash back.
And as more auto companies lower prices and offer incentives, competitors do the same. This fuels competition in the market, which can cause prices to fall even lower.
Right now, you can save big – auto experts at Edmunds are reporting bigger incentives at dealerships everywhere. Just this month new car incentives rose, giving customers an average of over $3,200 off the price of a new car. That’s hundreds of dollars more than the average incentives just one year ago.
But there’s a catch. You won’t hear about these stellar deals and deep discounts when you walk into your local dealership.
These deals aren’t easy to find. That’s because dealerships want it that way. They’d lose too much money advertising such savings to the general public, so it takes doing a little extra research to ensure you’re getting the best price. Only customers who know where sales are slow, which models aren’t moving, and which auto companies are offering the best incentives can reap the benefits.
Sure, you could potentially get these savings at a dealership, but that usually involves some pretty heavy bargaining. They don’t want to sell you a car at the manufacturer’s reduced rate because that works against the business model of getting the most per sale.
You’ll find that car salesmen will try to sell you a car for the highest possible price when you walk into a dealership, but don’t be fooled. Don’t assume any amount of negotiation is sure to work, either. You could spend hours convincing a car dealer to lower their price to no avail. Remember, auto salespeople are determined to make as much money as possible off every sale – which means they aren’t willing to hand over discounts easily.
That’s why we’re here to tell you about an easier way. The internet is your best tool for sourcing the most up-to-date car deals. With the proper research, you could save thousands on your next ride, minus the stress of negotiating with a stubborn car salesman. Even if you already have a specific car in mind, we’re confident there are savings out there for you. You just need to head to the dealership armed with comparison pricing, and insider knowledge.
Interested in getting a brand-new car for less? Start a search today!