What's one thing you wish you knew about car prices before making your last purchase? Knowing what you know now, what advice would you give to others?

Question

Imagine driving off the lot in your new car only to discover you could have saved thousands with just a bit more knowledge. Seasoned professionals like Licensed Insurance Agents and Founders share their top insights to help you avoid common pitfalls. From the importance of comparison shopping between dealerships to understanding price fluctuations and fees, this article compiles twelve invaluable pieces of advice. Get ready to make a smarter purchase with these expert tips.

Michelle Robbins · Answer

Writing about car insurance for a digital-media company in the insurance industry, I knew that car-insurance rates for the same types of coverage could vary widely by provider. But for some reason, I didn't realize that car prices for the same kind of car could vary widely by dealership.
But knowing what I know now, the advice I would give to others would be to do the same with purchasing a car as with purchasing car insurance: comparison shopping is the way to go. Compare at least three dealerships. Find out what costs and fees are wrapped up in the sticker price and how they appraise trade-ins.
Also important is to find out their interest rate for financing. You can get a better deal if you finance a car with your bank or credit union than with the dealership. You can also negotiate a better rate with a dealership if you have an auto-loan preapproval.

Aseem Jha · Answer

What I Learned About Car Prices and Resale Value
One thing I wish I had known about car prices before making my last purchase is how significantly market trends can affect resale value.
When I bought my car, I focused primarily on the initial price and the features I wanted, but I didn't fully consider how certain models depreciate faster than others. For instance, I later learned that vehicles with high demand often hold their value much better.
Knowing what I know now, my advice to others would be to research not only the purchase price but also the long-term value and reliability ratings of different models. Websites that track resale values and owner reviews can be invaluable resources.
Additionally, consider the total cost of ownership, including insurance, maintenance, and fuel efficiency, as these factors can greatly impact your budget in the long run. Taking the time to gather this information can lead to a more informed decision and a better investment.

Ranjeet Singh · Answer

Before my last buy, one aspect that I would've liked to have known regarding car prices is the strong rate of depreciation that occurs in the first few years of ownership. Just as soon as a new car is bought, it depreciates, with the most depreciation occurring over the initial two to three years. If this had occurred to me, I would have bought a second-hand car that is almost new instead of buying a new car, which would have been less costly to me at the time.
An idea that has also come up is how I approached the assessment of the total cost of ownership other than simply the purchase price. This also takes into account the insurance premiums, maintenance expenses, costs incurred on the fuel, and even resale value. In many cases, people fall in love with attractive characteristics or brand names, but it is important to look at the cost of ownership which can be a lot less affordable.
My recommendation to other people is that they should know the make and model they wish to purchase as well as what they should expect to pay for it either new or used, and resale value. Sometimes, a bit of extra research on car depreciation and trends helps in making better purchases and aids in sound financial decisions in the future.

Seth Newman · Answer

I have a buddy who is a car salesman, and he was telling me some "industry knowledge" on the best times to buy cars. Typically, the best time to buy a car is the end of the month and later in the year because the dealership is trying to get rid of inventory, and you can typically strike up a better deal then. I got a great deal on a car, and I asked my friend why. He informed me of all of those factors and that the car dealership probably had incentives to meet from the manufacturers, so they are okay knocking off a lot of money or throwing in some extras near the end of the month and year to meet those quotas. While I got lucky with my deal, I wish I had known this beforehand. I'll be buying a new car shortly, and now that I understand that, I'll be going later on in the year and at the end of the month.

Brett Iwanowicz · Answer

It may not be as significant an investment as buying a house, but it still requires careful consideration and planning. Before my last car purchase, I wish I had understood depreciation, which is the decline in a car's value over time due to factors like wear and tear and market demand. I learned that a new car can lose up to 20% of its value in the first year, affecting its resale value significantly.
Knowing this now, my advice to others would be to consider buying a slightly-used car instead of a brand-new one. This way, you can avoid the initial depreciation hit and still get a reliable vehicle at a lower cost. Additionally, doing thorough research and comparing prices from different dealerships or private sellers can also help save money on car purchases.
I would advise others to not just focus on the initial price of a car, but also consider factors such as depreciation and maintenance costs before making a purchase. Doing so can help save money in the long run and ensure that the car remains a valuable asset. So, it is always wise to do proper research and consult with experts before making any big financial decisions like buying a car. Remember, knowledge is power, and it can help you make informed choices that will benefit you in the future.

Tammy Sons · Answer

I am sick over purchasing my last vehicle. Why? Because I didn't know that most car dealerships offer major, deep discounts on zero-mile "last year's overstock" vehicles. New models come out around the second quarter of each year, and the current year is considered a year old. I learned to never buy a car before August of any given year and to always ask for a "new former-year make."

Mark Hirsch · Answer

One thing I wish I had known before my previous automobile purchase was how much the time of the transaction influences pricing. I hadn’t realized how important seasonal demand and supply chain difficulties could be. For example, buying at the end of the year or during large sales events can result in better deals because dealerships aim to achieve targets. Furthermore, I misjudged the influence of shortages, such as the recent chip scarcity, on prices, including for used cars.
Knowing what I know now, I advise others to conduct rigorous research on current market conditions before purchasing. Don’t focus only on the vehicle; keep an eye on industry trends, dealership promotions, and timing. Also, consider being pre-approved for financing from a bank or credit union rather than depending on dealership financing, which may not provide the lowest prices.

Ryan Farook · Answer

One thing I wish I knew about car prices before making my last purchase is how much they can fluctuate based on timing and market conditions. As a car-detailing expert and service provider, I now understand that factors like supply-chain issues, seasonal demand, and even economic trends can cause significant changes in car prices. Unfortunately, I ended up buying when prices were at a high. Knowing this now, I would recommend that buyers research not just the car model but also the broader market trends. For example, purchasing during the off-season or waiting for promotional periods could save a lot of money.
Another piece of advice I'd give is to look beyond the sticker price. Dealers often add on extra fees like extended warranties, delivery charges, and service packages that can quickly raise the final cost. Before finalizing any deal, make sure to ask for a full breakdown of the fees, and don't hesitate to negotiate. It's important to know exactly what you're paying for, and if you're not careful, you might end up with unnecessary add-ons.

Leonard Garcia · Answer

One thing I wish I had acknowledged before making my last car purchase was the significance of aligning the car's functionality with realistic future requirements. In the insurance industry, I've witnessed many clients overlook their long-term needs, like the need for extra space for a growing family or fuel efficiency for long commutes, which can affect both resale value and personal satisfaction over time.
Having seen the impacts of economic fluctuations in Miami's vibrant community, it's clear that opting for a vehicle with flexible financing options can be beneficial, especially during uncertain times. A client of mine strategically chose a hybrid model, anticipating rising fuel costs, and it's saved them over $1,200 annually.
I advise considering the local market trends in car values, where certain reliable models hold value better over time. A colleague recently benefited from purchasing a Honda Civic, which has consistently shown low depreciation rates in our region, protecting his investment and simplifying his insurance needs.

Tracie Crites · Answer

One thing I wish I'd known about car prices before my last purchase is just how much regional demand can impact the final cost. Dealerships don't always stick to a standard price across locations. They adjust based on what's popular in a particular area, which can lead to some surprising price differences. If a specific model is really popular in your region, you could be paying a premium compared to someone buying the exact same car in an area where that model isn't in high demand.
Knowing this would have opened up some options for me to look beyond my immediate area. It could have been worth exploring dealerships a bit farther out, especially in places where that model isn't as in demand. I might have gotten a much better deal with a little extra legwork. In some cases, the savings can offset the cost of travel or even delivery, making it worthwhile to think outside the box and shop regionally instead of only locally.

Fawad langah · Answer

Hi,I'm Fawad Langah, a Director-General at Best Diplomats, an organization specializing in leadership, business, global affairs, and international relations. With years of experience writing on these topics, I can provide valuable insights to help navigate complex issues with clarity and confidence.
Here is my answer:
One thing I wish I had known before purchasing my last car is the significant impact of market trends on prices. When I bought my vehicle, I focused solely on the model and features I wanted, overlooking the economic factors influencing car prices.
After my purchase, I learned that prices can fluctuate based on supply chain issues, gas prices, and seasonal demand. If I had researched these trends, I could have chosen a better time to buy, potentially saving a substantial amount.
To others considering a car purchase, my advice is simple: do your homework. Monitor market trends and vehicle availability. Websites that track pricing can give you insights into when prices might drop. Additionally, consider waiting for holiday sales or end-of-year clearance events, often leading to better deals.
Lastly, don't be afraid to negotiate. Knowing the market value can empower you to ask for a fair price. Being informed can lead to a more satisfying purchase experience and a better financial decision. Take the time to research, and you'll likely enjoy a more beneficial outcome in your car-buying journey.
I hope my response proves helpful! Feel free to reach out if you have any questions or need additional insights. And, of course, feel free to adjust my answer to suit your style and tone.
Best regards,Fawad LangahMy Website: https://bestdiplomats.org/Email: fawad.langah@bestdiplomats.org

Rhiannon John · Answer

Before I bought my last car, I wish I'd known more about the hidden costs that aren't always obvious when you're browsing prices. I was so focused on getting a good deal on the purchase price that I didn't fully factor in things like the long-term maintenance, the price of insurance, and how different models can vary in fuel costs. All of that really impacts how "affordable" a car is in the long run.
I'd definitely advise people to look beyond the immediate price-tag. Make sure you're factoring in the total cost of ownership. And, if possible, get a pre-purchase inspection by a trusted mechanic. That alone could save you from unexpected repair bills down the line. It's one of those things you might not think about in the excitement of buying, but it's crucial!

12 Things I Wish I Knew About Car Prices Before Buying

12 Things I Wish I Knew About Car Prices Before Buying

Comparison Shop Between Dealerships

Research Market Trends and Resale Value

Consider Depreciation and Total Ownership Cost

Buy at End of Month or Year

Consider Buying Slightly-Used Cars

Ask for Last Year's Overstock Vehicles

Research Market Conditions and Timing

Understand Price Fluctuations and Fees

Align Car with Future Requirements

Consider Regional Demand and Shop Around

Monitor Market Trends Before Purchase

Factor in Hidden Costs and Inspections