The Auto Writer

An orphan model such as the pictured Pontiac G8 can yield significant savings for new car buyers.

Coming off of one of the worst years in memory for car manufacturers means that new car buyers can expect to find some terrific deals when shopping for a new ride. If you are planning to buy a new car in the coming weeks or months, then you stand an excellent chance of driving off the dealer lot with a good buy, but only if you do your homework first.

Let’s take a look at some of the top car buying tips for 2010:

1. Shop on your own terms. Many people shop for a new car when they absolutely need a new one. Their old car may have died or they may have suddenly taken on a new job in a location where previously depended on public transportation is not available. For everyone else, a car purchase should be carefully considered and a purchase made without external pressures. You are much less likely to agree to a deal if you do not have the pressure of buying a new car hanging over your head.

2. What do you want? Before shopping for a new car, what kind of vehicle do you want? If you are trading your ride in for the latest version of your current vehicle, then the hard work is already done for you. However, if you plan on buying something new or different, there are more than 700 vehicles on the market. Narrow that list down by body style, price range, amenities, and brand.

3. Where will you buy it? Heading to your local dealership used to be your only option when it came to purchasing a new car. These days the internet has made it possible to shop online and across the country to hunt down the best deal, but so have car buying clubs from AAA, Sam’s Club, BJ’s Wholesale, Costco, and even some places of employment. You may need to pay an annual membership fee to join and you may be charged a search fee to help you locate a vehicle, but you could end up saving hundreds of dollars off the sticker price by using one of these services.

4. Check invoicing. Information revealing what your dealer pays for new cars, secret rebates from manufacturers, and other sales incentives can help you save money on your purchase. Consumer Reports, Edmunds, and Kelley Blue Book each offer information (for a small fee) on dealer invoicing, an invaluable tool to have on hand before you shop for a new car.

5. Consider a leftover. This year’s model may be the latest and the greatest, but it may not have the incentives matching a leftover vehicle from the previous model year. But it isn’t just 2009 models which are leftovers; in the coming weeks several 2011 models will hit the market which means that a number of 2010 vehicles will be considered last year’s model. Just remember that any older model, even new, has likely lost thousands of dollars in value due to a model year change over. $3000 off a sticker price may sound wonderful, but if the car has already decreased by $5000 or more, then you are not getting a bargain.

6. Should you buy an orphan? Now that General Motors has abandoned Pontiac and Saturn, dealerships are still trying to move 2009 models which remain unsold. GM incentivized dealers to the tune of $7000 to move these cars into rental fleets, therefore you can buy these barely used cars for a huge discount. Yes, the value of any Pontiac or Saturn has diminished considerably so be prepared to hold firm in your negotiations for an even better bargain or plan to look elsewhere.

7. Shop separately for a loan. If your dealer offers you a choice between a manufacturer’s rebate and a low interest rate auto loan, you are almost always better off taking the rebate and applying it to your purchase. Shop elsewhere for an auto loan, through your credit union or by finding the best deal through your bank. Your rate might be a bit higher than the auto financing company, but the rebate should more than offset the extra cost of financing your new car on your own.

8. Sell your used car separately. Trading in your used car for the new one almost always results in you losing a lot of money. Always negotiate the best deal for your new car first, before even considering your trade in. Once your new car deal has been finalized in writing, then and only then see what the dealer will give you for your old car. Chances are it will fetch significantly less than what you could get selling it on your own, so be prepared to market your old car yourself.

9. Remain aloof. Car dealers love it when their customers insist, “I must have that car!” Once you make that critical admission, then the salesman has you. Keep your feelings to yourself and be prepared to walk away if terms are unfavorable. Do not let your heart dictate what your head tells you is the right way to go!

The amount of time you put into your new car search should offer correspondingly good with your savings. Explore your options, complete your research, and go into the new car deal negotiation ready to stand your ground. Lastly, be prepared to look elsewhere if the dealer’s terms are nowhere near what you need.

Photo Credit: GM Corp.