(WSPA) – Remember when car lots were basically empty? Well, a lot is changing in the car market and if you’re looking to buy you can use that to your advantage if you know where to find the savings.
7NEWS Here to Help got expert advice on how to drive down the costs of a new or used car.
We met Angel Fong and his son Adrian Merlo on a day they will never forget. 18-year-old Merlo has just bought his first car, a 2016 white BMW, and for this purchase, he had learned from his father’s mistakes.
“I bought a vehicle and it was $10,000 over price…Last year it was this is the price of the vehicle and there’s nothing we can do about it. Right now there’s a little bit more inventory, so there’s a little more negotiations,” Fong said.
Big price drops on certain makes and models
Amit Patel, the General Manager of Spartanburg Chrysler Dodge Jeep Ram, said this is a buyer’s market.
“Now’s a good time to buy because the discounts are bigger than they’ve ever been. A year ago a $60,000 truck cost $60,000 and now you have people who can come in and buy a $60,000 truck for $45,000, so that’s a huge savings,” according to Patel.
Price analysts with Kelley Blue Book said buyers also have more wiggle room with Ford, Audi, Nissan, Buick, Jeep, Infinity, Genesis and Ram where inventory is high.
Not all inventory is high
“There’s a big asterisk with this story, and that is that although we’ve seen the inventory levels rise, that is not equal across the board. So, if you’re looking for a Toyota, Honda, Lexus, Mazda or Kia, the supplies are still tight,” Matt Degen, with Kelley Blue Book, explained.
How to save on used
Degen says if you’re looking to save on used cars, start Certified Pre Owned (CPO). They are usually within 7 years old, less than 70,000 miles, checked by technicians and come with a warranty.
Looking at last year’s model can also help you save.
If you’re like Merlo and have your eye on a specific -older- model, compare options from afar, don’t just visit local dealerships.
Merlo and his father drove to Spartanburg from North Carolina.
“Sometimes it’s worth the drive if you can save 3-4 thousand dollars that’s huge. It makes a big difference,” Fong said.
Jonathan Weaver, owner of Charlie’s Used Cars, also reminded buyers not to get fooled by a low monthly rate.
“Something important to remember is how long are the terms and how much is the interest rate and a lot of times those things aren’t discussed until it’s ready to sign,” Weaver said.
Keep in mind, no matter what you pay on a car, auto insurance is not only high but expected to rise this year so make sure to account for that in your monthly car budget.
What about your trade-in?
The way you handle your trade-in may also slash your overall price. You’d be wise to treat it as a separate transaction and shop around for the dealership offering top dollar.
Adrian didn’t have a car to trade in, but he had been working full-time to save up for the down payment and got pre-financed through a credit union.
Those are smart moves for a young man, now on the move.
“I feel really excited. I can’t wait to take this car home,” Merlo said.