To avoid a lemon when you buy a new car, it’s a good idea to wait until new models are reviewed by an independent agency such as Consumer Reports. The 2021 report ranked the Toyota Corolla the best overall, based on reliability and safety.
Tip for this tactic: Practice patience and wait for the pros to review your ride before you buy. Consumer Reports typically releases its list of the best new cars at the beginning of each calendar year.
Information is accurate as of Nov. 29, 2021.
Although the sleek new body design on your desired vehicle might be enticing, think twice before shelling out top dollar for a few extra curves or driver perks. Underneath the vehicle might be exactly the same, but what meets the eye often comes with a higher price. Carefully consider changes between model years and decide whether a new perk, such as heated seats, is really worth shelling out extra dough.
Tip for this tactic: Websites such as Cars.com offer comparison tools to help you determine what has changed during each model year a vehicle is made.
5. Before a New Model Has Been Reviewed
When considering when to buy a new car, you should think twice before purchasing new wheels in the spring, according to USAA. Winter weather is no longer an issue, tax refund season is in full swing and the summer travel season is on the horizon — all of which are conditions that make people more likely to be interested in buying a car. And when a dealership has an increase in willing customers who are ready to buy, it isn’t as likely to offer frequent discounts and incentives.
Tip for this tactic: Instead of blowing your tax refund on a new ride, put that money into savings until new car deals emerge later in the year.
4. At the Beginning of a New Model Year
Auto dealers will check your credit score before negotiating terms if you plan on financing your new ride. Say you go to one auto dealer and apply for an auto loan but don’t like the interest rate you’re offered. You can go to another dealer or two and apply for loans as long as you do so within a 14-day window of the first inquiry, according to consumer credit bureau Experian.
By doing so, the credit inquiries basically all count as one inquiry. Waiting several weeks or months and then applying for another loan, however, will count as an additional hard inquiry and could have a negative impact on your credit score and the loan rate you are offered. In short, to save the most, plan your applications and credit checks strategically, or hold off until you are certain you will buy no matter what the terms offered.
Tip for this tactic: Don’t agree to a dealer’s credit check until you are ready to finance your purchase.
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