By
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It’s a tough market for car shoppers right now.
The prices of new cars hit all-time highs this fall, topping $50,000 on average, and the market for used cars is competitive.
"The buying experience keeps getting worse," said Consumer Reports’ Mike Quincy. Cheaper models of new cars are harder to find, Quincy said, and deals are fewer and farther between. "These days, dealerships are less likely to budge on pricing unless they have too …
By
Witthaya Prasongsin / Getty Images
It’s a tough market for car shoppers right now.
The prices of new cars hit all-time highs this fall, topping $50,000 on average, and the market for used cars is competitive.
"The buying experience keeps getting worse," said Consumer Reports’ Mike Quincy. Cheaper models of new cars are harder to find, Quincy said, and deals are fewer and farther between. "These days, dealerships are less likely to budge on pricing unless they have too many of a particular model in stock, or if they can make money off financing a vehicle.”
He and other experts at Consumer Reports compiled a list of tips and tricks for anyone buying a car, new or used.
Continue reading to see their recommendations.
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Budget before you shop
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Consumer Reports suggests getting your finances in order before you head to the dealership. That means sorting out what kind of car loan you can afford, what the monthly payment will be, and talking to your bank before you test drive anything.
“That gives you a baseline against which you can compare the terms of dealer financing, which may or may not be a good deal,” CR said.
Plus, if you make a budget beforehand, you’re probably less likely to fall for an upsell.
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Put more down
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You want to put as much cash down as possible, Consumer Reports says. Given today’s high interest rates, avoiding a high car loan is important to your loan-term financial health, especially since you don’t want to be saddled with a $1,000 monthly car payment.
CR suggests putting at least 15% down, and says 20-25% is even better, if you can manage it.
“Keep in mind that the best interest rates are reserved for buyers with excellent credit, so if your credit score needs improvement, putting down as much as possible is especially important,” CR said.
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Seek out deals
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If you’re willing to compromise on the vehicle you get, you might be able to score some great deals.
Consumer Reports said this is especially true “if you look among less-popular offerings—such as sedans, small hatchbacks, and front-wheel-drive.”
Also, don’t just look at dealerships. Head to websites that sell cars and compare their prices to those being offered at dealerships.
And don’t be afraid to travel a little. “Be cautious about casting your net too wide, though,” CR warned. “You want to be able to go see the car and test-drive it before signing a sales or leasing contract, and you don’t want it to get swooped up by another buyer while you’re on your way to see it.”
New incentives from the government are also helping buyers save money on U.S.-built cars. Remember: you can deduct $10,000 in loan interest from a model built in America that you bought after January 1, 2025.
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Be practical and flexible
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If you have your heart set on a model that consistently scores poorly in tests, you really might want to reconsider. Look up ratings, like CR’s reliability ranking, before purchasing your car.
And don’t be too rigid about the model and smaller features if you’re seeking savings.
“Decide which options are really important and whether a vehicle not having all of them means you should consider a different model,” CR said. “If you can’t find the features you want on the car you like best, consider downsizing or shopping among models that aren’t as popular.”w