As a fast-talking car salesman rattles off a flurry of numbers, it can be hard to make sense of whether it's a "good" offer. Fortunately, there's a simple way to make sure you get the best deal on your new car.
The trick is to break the car-buying process into four parts:
- The new car price
- The trade-in value
- The auto loan interest rate
- The aftermarket purchases in the finance and insurance office, where you close the deal
Dealers combine some of these elements into one offer, which can be hard to evaluate.
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They may offer you a great price on your new car but lowball you on the trade-in, for example. Comparing your options and sticking to price targets for each component of a car deal will ensure that you're getting a fair shake.