When it comes to a major purchase like a car, you likely want to save any money you can. Unfortunately, car-buying deals are not so easy to come by these days.
Though increases in new car prices have slowed since they shot up during the pandemic era, the “average cost of a new car remains historically high,” said Nerdwallet. “At the end of 2025, the average transaction price hit an all-time high of $50,326 according to Kelley Blue Book — and despite recent moderation, prices haven't strayed far from that peak.” And unfortunately, used cars are not that easy on the wallet either lately, especially given rising financing and car insurance costs.
But for many, a set of wheels is a necessity. If you are in the market, here are some ways you can try to trim costs.
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1. Do your research
Doing your homework before you set foot in a dealership is essential. Get familiar with car models in the class you are interested in, and see what is well-rated for factors like performance, reliablity and value. Figure out what a fair price is for that vehicle using “online pricing guides, such as Kelley Blue Book, Edmunds or NADA guides, to know what price you should pay,” said Nerdwallet.
2. Get pre-approved
Equally important is getting prepared financially. “Before you start visiting dealerships, get a pre-approved financing offer,” as this will ensure that the “dealer has to offer a better deal if they want to earn your business for this part of the transaction,” said U.S. News & World Report. Be sure to shop around, too, before you settle on any one offer from an auto lender, to ensure you get the best rate.
3. Keep your eye out for incentives
“Check dealership and manufacturer websites for local and national incentives such as cash-back offers, low-rate or even 0 percent financing, and lease deals with low monthly payments, said Consumer Reports. It is not uncommon to find these sorts of offers “among less-popular offerings — such as sedans, small hatchbacks, and front-wheel-drive (as opposed to all-wheel-drive) SUVs,” said the outlet. Certain times of year to buy a car are also better than others if you are after a good deal.
4. Brush up on your negotiation tactics
Whether you are working with a car dealer or a private seller, it never hurts to ask for a better offer. One “good negotiation tip is to focus on the car’s total price,” said TaxAct. “A salesperson will sometimes try to gauge how much of a monthly payment you can afford instead of your total budget, which can lead to you spending more money than you anticipated,” especially once car ownership costs are factored in.
The trump card in a negotiation, however, is being comfortable walking away. “Just showing the willingness to get up and leave is often a powerful enough message to get the dealership staff to take notice and make you a better offer,” said U.S. News & World Report.
5. Stay flexible
Staying open about which car you get and the features it has can go a long way towards getting a better price. For instance, “note which brands have more or fewer cars in stock,” as those with more inventory will typically be more willing to negotiate, said Kiplinger (a sister site of The Week). Also consider the different trims offered in a vehicle, and which features seem like a necessity and which you are fine living without. If you feel like you need certain add-ons but the price is not matching up with your budget, “consider downsizing or shopping among models that aren’t as popular,” said Consumer Reports.
