In 2022, post-pandemic, new and used vehicle prices went through the roof. Car and truck prices have decreased since then, but the average new car price is still more than $47,000. Car dealer incentives for new vehicles can relieve some of the financial hit. However, buyers are still looking at hefty price tags and down payments.
When new car prices drop, it often leads to a decrease in used car prices, making it a great time to score fantastic deals on pre-owned vehicles. There are plenty of reasons to consider purchasing a used car over a new one, from lower costs to a wider selection. But with new vehicle incentives like rebates, it’s understandable if you’re torn between the two. To help you make an informed decision, let’s break down what’s really happening in the used car market.
Understanding Car Dealer Incentives
Traditional incentives offered by new car dealerships are typically aimed at boosting sales for slow-moving inventory, pushing certain models, and more. These deals, such as cash-back offers, special financing rates, or rebates, may sound tempting, but they’re often designed with the dealer’s goals in mind, not necessarily the buyer’s.
In contrast, while used car dealerships don’t offer the same traditional dealer incentives, they do offer one thing that new car deals can’t beat – better overall deals. Used cars are often sold for nearly half the price of new models, providing a significant incentive for those looking for a better price point.
New vs. Used Car Incentives
Flexible Financing Options
New car dealerships often offer financing deals that can include rebates or low-interest rates. However, these offers typically require excellent credit and are often limited to short loan terms. For buyers with less-than-perfect credit, these deals may not be as accessible.
On the other hand, used car dealerships like Auto Time Supercenter cater to a broader range of credit situations, offering flexible financing solutions regardless of your credit score. Whether you have great, fair, or less-than-ideal credit, used car dealers can provide a variety of options to help you drive away with the car you need at an affordable rate.
Down Payment Assistance
The average down payment for a new car can be as high as 20% of the vehicle’s price, which could amount to thousands of dollars. This figure is often dependent on the buyer’s credit history, which means only those with excellent credit may qualify for low or no down payment options.
Used car dealerships understand that not all buyers have large sums to put down upfront. That’s why many offer down payment assistance programs, like Auto Time Supercenter’s program, which can get you behind the wheel for as little as $500.
Trade-In Offers
Trade-ins are a common method of reducing the cost of purchasing a new car. However, many new car dealerships are known for offering low trade-in values because they often rely on financing from the bank for their new inventory.
Used car dealerships, on the other hand, are more likely to offer better trade-in values since their entire stock consists of pre-owned vehicles. At Auto Time Supercenter, for example, your trade-in could cover a significant portion of your down payment, further lowering the price of your vehicle.
EV Incentives
Electric vehicles (EVs) and hybrids are already known for their cost savings and environmental benefits. But now, if you purchase a used EV or hybrid after December 31, 2022, you may be eligible for a federal tax credit of up to $4,000, depending on the model and eligibility requirements. This added incentive can make used EVs even more appealing.
Tips for Getting the Best Deal on a Used Car
Do Your Research
Before heading to the dealership, take some time to assess your budget and determine how much you can afford for a down payment, monthly payments, and other costs. Research different models to find the best fit for your lifestyle and price range. Make a shortlist of options, and then visit Auto Time Supercenter for test drives.
Stay Flexible
Being open to different options will help you find the best deal. Don’t limit yourself to just one car; compare pricing, history reports, and financing options. The more flexible you are in your search, the more likely you are to find a car that fits your needs and budget.
Negotiate with Confidence
Understanding how to negotiate is key when buying a used car. Dealers often have some wiggle room on price, and you may be able to score additional perks or incentives, like free maintenance or a reduced price. Do your homework beforehand and know the market value of the car you’re interested in.
Choose the Right Time to Shop
It’s no secret that car dealerships can be crowded on weekends, but did you know that Mondays and Tuesdays are usually much slower? Visiting the dealership during off-peak hours gives you a better chance of negotiating a deal since you’ll have more attention from the sales staff. Additionally, check for seasonal promotions and sales events to maximize your savings.
By being well-prepared and flexible in your approach, you can make the most of used car dealer incentives and drive away with a great deal!
