The average new car now costs over $47,000, according to the latest data from Kelley Blue Book. This means you might be in for sticker shock when you head to the dealer — but you don’t have to pay full price.
“You should be negotiating every single car you get,” Tomislav Mikula, a personal car-buying advocate, said on TikTok. “If you’re paying MSRP, you’re probably not getting a good deal.”
Here are Mikula’s top tips for saving thousands on your next car purchase.
Seek Out Incentives
Many automakers will release incentive deals for their new vehicles, which often entail hefty savings.
“If you’re buying a new car, new car incentive rates are almost always the way to go,” Mikula said in the TikTok video.
Don’t Ever Agree To Pay for Add-Ons
Many dealers will try to upsell you during the buying process. Simply turning down these add-ons can save you a lot of money.
“New cars are extremely negotiable,” Mikula said. “I’m not paying any of those fees or add-ons. Dealerships are still going to try to charge them — they want to maximize the profit — but understand you can negotiate.”
Don’t Limit Yourself To Cars in Your Immediate Area
Cast as wide a net as possible to find the best deals. This might mean finding deals that are far from where you live, but if the price is right, it can still be cheaper even after paying for shipping.
“As dealerships are trying to sell more cars, shipping a car has become more and more of an option than it ever has been in years past,” Mikula said. “Shipping is actually coming down in price. And if you’re trying to find a really sought-after car, let’s just say a Highlander Hybrid, you can definitely try to buy outside that area and ship the car in. 2024 is probably the best year to do shipping that I’ve seen in the last few years.”
Start a Bidding War
Mikula’s favorite tip for saving thousands on your next car doesn’t involve you even setting foot into a dealership — this can all be done via phone, email or text. In another TikTok video, he explains that his best way to save his clients money on their car purchases is to start a bidding war between dealerships.
“I always say negotiation is like a game of chess,” he said. “We are going to use competition between dealer to dealer to get the best possible price and pin them against each other. All you have to do is contact multiple dealerships. I recommend, if it’s a common car, five dealerships, if it’s an uncommon car, 10 dealerships, and ask them for their best out-the-door price.”
While some dealerships won’t give you this number, Mikula said that “80% will absolutely play ball.” The first price quoted to you will likely not be super competitive, but this is just the start of the negotiation game.
“Find the best quote and send it to all the dealerships, asking who would beat that price,” he said. “You keep doing this over and over until you have a winner. That winner is going to be the best deal when nobody’s willing to match that deal.”
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