It’s that time of year ladies. The time when automotive manufacturers and dealers are clamoring to drum up some holiday business with their “special” deals. You know them better as:
“No money down!”
“This weekend only!”
“Up to $3,000 off.”
“Minimum $1,000 trade-in; just push, pull, or drag it in.”
“Low, low interest rates.”
But there are hidden meanings between these lines. Here’s what to look out for when shopping the holiday (End of Year) deals on a new car.
“No money down!”- This could mean that you will have higher interest rates or a higher overall monthly payment to offset the cost of the bigger loan. Always check with competing dealers to see who is willing to give you the better deal.
“This weekend only!”- Don’t let this pressure you into buying before you’re ready. There are always good deals waiting to be found throughout the year if you’re patient.
“Up to $3,000 off.”- Be sure to read the fine print on this one, because more than likely there is a minimum value of the car you need to purchase before you can get in on this deal.
“Minimum $1,000 trade-in.”- The idea behind this tactic is to keep your mind focused on the great trade-in refund they are giving you, so that the bad deal you are getting on your new car will pass right over your head. Do not focus on trade-in values or monthly payments ever. It should be the total price of the car (and possibly the interest rate) that will guide you to finding the best deal on a new car.
“Low, low interest rates.”- These are often subject to a shiny credit score or a large down payment. Occasionally, a manufacturer can offer a great interest rate through their own financing company, but don’t forget to see what kind of a loan you can get through your own bank or credit union, as they may have an even lower interest rate.