One important aspect of getting a good deal on a new car is securing good financing. Some dealerships may even offer 0% financing deals to buyers with excellent credit. While these are often short-term loans, financing the car in three years as opposed to five, free financing cannot be beat. Financing your new car for three to four years instead of five will always save you money on interest. If that is not an option, compare your financing possibilities. Check with your bank or credit union, as well as the car dealer about interest rates, terms and other loan details. As with any loan, taking the time to review and correct your credit report prior to applying will save you money and make the loan process more pleasant.

In order to negotiate a price on your new car, you need to know the price the dealer paid for the car. Ask to see the dealer invoice on the car. A reputable dealer should be willing to share this with you. Be certain that you have looked up the best prices, invoices and other pricing information on the vehicle you want to buy. This can help protect you from a dishonest car dealer. Do not believe that the manufacturer's suggested retail price sticker on the car window is the dealer invoice. It most certainly is not. Only by knowing what the dealer paid for the car can you reasonably make an offer that is fair to both you and the dealership.

Many experts suggest offering 5% over dealer's actual cost when buying a new car. Keep in mind that the manufacturer does refund some of the dealer costs listed on the invoice, including flooring assistance and factory holdback. There may also be factory to dealer incentives that reduce total dealer cost. Only by doing your research can you appropriately judge the dealer cost and know what to offer on your new car purchase.

Much of the time you may do better selling your old car rather than trading it in toward the purchase of a new car. This is not always true, but dealers offer wholesale pricing on the cars they take in trade, and sometimes less than that. If you do choose to trade your old car in at the dealership, go in with a good awareness of Kelly Blue Book pricing for your vehicle and insist on the full wholesale price.

While buying a new car is a big investment, with some simple strategies you can save on this purchase. Do your research, look honestly at your own finances, and avoid buying more car than you can afford. Buying used rather than new is often a better financial move, but if you do choose to buy new, knowing the market will help you secure the best price on your new car, truck or van.