6 tips to get the best deal on a new car in 2023 (2024)

If you've been discouraged by the new car buying market and are wondering how to get the best deal on a new car in 2023, you're not alone. Since the pandemic, a lot has changed in the way Americans buy their cars.

Instead of walking into a dealer's lot at the end of the month to make a last-minute purchase, buying a car in 2023 will require a little more strategy than before. It's important to do your research beforehand, including knowing the local car buying trends in your area. With a little time and patience you can score a good deal.

Purchasing a new car in 2023: what has changed?

Just a few years ago, a car buyer could show up at his local dealer on the last few days of the month to get the best price on a new car. This is because dealers had to meet quotas at the end of the month and remove excess inventory that they wanted to clear from the lot. If your negotiations with a dealer failed in the past, you simply had to move on to the next dealer down the street.

That all changed as stocks plummeted and global supply chains fell apart during the pandemic. As global shutdowns drastically reduced mileage, manufacturers tightened their belts in response. And in anticipation of lower demand for new cars, manufacturers also canceled microchip orders. Unfortunately, these predictions were wrong and demand for new cars returned faster than expected. These decisions are what still influence new cars today.

Due to a lack of microchip and stock, month-end deals with prices below the recommended retail price are a thing of the past. These days, paying the manufacturer's suggested retail price can be considered a bargain. But there is good news for potential buyers: car prices are expected to fall by 2.5% to 5% this year. So what does that mean for you?

The rules for getting a good deal on a new car have changed, and 'good deals' look different than before. To find the best deal on a new car today, it's more important than ever to start your car buying process with a plan, thorough research, and realistic expectations.

How to get the best deal on a new car in 2023

If you're ready to be honest about the 2023 new car market, andrefinancing your existing car loanIf you don't want to do anything, these six steps can help you navigate the new normal of car buying.

1. Be flexible.

If you want the best deal on a new car, flexibility is key. You reduce your options and bargaining points with each must-have you add to your list of new car criteria. Some areas where flexibility can help increase your options include:

• Car color:Many dealers have limited inventory, so being flexible about the color of the car allows you to prioritize other features that you may find more important, such as vehicle type.

• Additional features:Instead of waiting for models with upgraded wheels or roof racks to hit the market, consider adding aftermarket aftermarket accessories.

• Vehicle type:Consider making a list of different car types that meet your needs so you can make the most of the options on the lot.

• Intern:If you can remain flexible on upholstery and interior trim colors, you may be able to avoid special order-related delays.

2. Know MSRP (and how to master it).

The Manufacturer's Suggested Retail Price, or MSRP, represents the price for which automakers recommend dealers sell their vehicles and is usually displayed on a new car's window sticker. Although dealers may want you to consider the MSRP as the price tag of the car, consider this as a starting point for any negotiations. You can find the suggested retail price for most car makes and models at Kelly Blue Book^®of Edmunds^®.

Once you know the MSRP of the vehicle you are interested in, it is a good idea to research the market value or retail price for the make and model by zip code. Market value takes into account several factors, including current demand, supply, options and dealer incentives. If the car you're interested in is in high demand, a market value of $5,000 above MSRP may be a good deal. In general, a sales price slightly below MSRP will be a reasonable target.

Some examples of how MSRP allows you to close deals include:

• Price comparison:Because the recommended retail price is the same at all dealers, you can compare prices accurately if you know the recommended retail price of a car.

• To trust:Knowing a car's suggested retail price and local price trends puts you in a better position to negotiate when you get to the dealer.

• Market awareness:When you combine MSRP and local price trends, you can better judge whether a deal is good or bad.

3. Go home.

Considering that U.S.-based automakers have been working to rebuild their inventories, the best new car deals in 2023 could be on domestic cars. While you may have been an import loyalist before the pandemic, considering domestic makes and models could lead to better options and make negotiations a little easier.

Some ways homecoming can help you search for a new car:

• Higher stock:Inventory is low across the board, but most domestic brands generally have 30 days of inventory (and quicker availability for buyers), which is higher than many foreign manufacturers.

• Cheaper transportation:Because domestic cars are only shipped within the United States, transportation costs will be lower than imported models (which means lower costs for buyers).

• SUVs and trucks:Domestic manufacturers usually have a wide choice of models that can meet your needs.

4. Be a local market professional.

Prices, models and availability for new cars vary by city and region. That's why it's important to learn about your local new car market, including top models, prices and current inventory. The more knowledge you have, the better you can negotiate.

Once you have an idea of ​​your preferred makes and models, you can contact several local car dealers for information about:

• Inventory:Knowing if a car is in stock or needs special order can help you negotiate a better deal.

• Taken:When you receive quotes, ask for "outside" prices and get everything in writing via email or textForyou visit the dealer.

• Documentation costs:This fee (which usually covers administrative paperwork) can vary widely, so ask for a fixed quote.

• Financial incentives from the manufacturer:Ask about available manufacturer rebates and incentives, including special payout offers and promotional interest rates.

• Dealer promotions:Local car dealers compete all the time, so it's worth asking them to match another dealer's quote.

5. Buy online.

If you can't find the car and options you want at a local dealer, see what you can find on the online car marketplace. You can buy a new car sight unseen online, or by test driving the car you want on site and then paying a deposit online for a similar vehicle for delivery at some point in the future.

In addition to the shopping-in-your-pyjamas experience, buying a new car online can help you:

• Find exactly what you're looking for:By comparing different car makes, models, features and options from home, you no longer have to spend time visiting multiple dealers.

• Compare prices:Online car marketplaces make it easy to compare prices of the same make and model at multiple dealerships across the country.

• Go national:If your ideal car isn't available close to home, an online shopping experience can locate (and arrange for delivery) your vehicle in any of the 48 contiguous states.

6. Don't drop the old rules completely.

The car market has changed significantly, but that doesn't mean you should throw away the car buying rules of the past, which still make sense. Some rules of thumb for the follow-up process are:

• Time for your shop.Do you want extra attention and help while shopping? Weekdays are still the best days to visit a new car lot because dealerships are usually less busy.

• Appreciate your trade-in.Know what your trade-in is worth before you make a transaction. Consider using the Kelly Blue Book^®of Edmunds^®to determine the fair market price (for private sales) and trade-in price (for dealers).

• Shop the sale.There are still sales going on at this market, so keep your eyes peeled for big sales events during holiday weekends like the 4th of July and Labor Day. Also look for year-end sales events from October through December, where generous savings and incentives on vehicles from the outgoing model year are likely to continue.

• Cast a wide net.It's still true that if you drive a few hours outside your city to a less populated area, you can potentially save hundreds, if not thousands, of dollars on the cost of a new car.

In short

For anyone wanting to know how to get the best price on a new car in 2023, there are a few things to keep in mind. If you can be flexible in terms of brand, model and equipment, the more options you have in a market where supply and inventory remain somewhat limited. Be prepared to do some research on market value and price trends so that you are better able to negotiate and get a fair deal given current market conditions.