In the market for a new car? Here's how to save money in an inflated market

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Thursday, June 30, 2022
How to save money when buying a new car in an inflated market
Inflation is hitting everyone hard, especially people in the market for a new car. These are some tips to try to help car shoppers save money.

Inflation is hitting everyone hard, especially people in the market for a new car. These are some tips to try to help car shoppers save money.

Like everything else these days, car prices are skyrocketing.

The average price for a new car last month was just over $47,000, the second highest ever.

That's up more than 13% from a year ago.

"Now is not a good time to buy a new car," said Ben Preston from Consumer Reports.

But what if you need to buy a new car? Experts have some tips to help you try to find a good deal.

First, figure out exactly what you want and then have some alternatives.

Certain brands may cost less than other brands for the same type of car.

"You can figure out some cars that are similar to what you were looking for originally that maybe are less sought after and have greater availability," Preston said.

Because demand for new cars is high, buyers have been paying well above the sticker price lately.

MORE: Minnesota gas station owner puts up sign for his customers: 'We hate our gas prices too'

The nationwide average price for a gallon of gasoline has topped $5 for the first time ever, and drivers aren't the only ones fed up with the price hikes.

But choosing a different type of vehicle might save you money.

"If you go buy a full size pickup or you go buy a large SUV, those are popular. So, you're going to pay for that." said Brian Moody, Kelley Blue Book executive editor. "If you want a deal, then look for the types of vehicles that people aren't buying as much and that's things like sedans and hatchbacks."

Make sure you have financing in place when you're shopping by getting pre-approved for a loan.

Definitely check out car buying apps and local dealership websites to see what's available.

Consider widening your search to areas farther away from your home to find more available cars.

And if you find a car you like, don't hesitate.

"Because in this market, it's very much a seller's market and whatever is available is going quickly," Preston said. "So when you buy your car, you have to be ready to go."