 TITLE: What Is the Average Price for a New Car? CONTENT: How to Buy a New Car\n--------------------\nIf you've done your research and decided that buying a new car is the best option for you, here are some tips on how to go through the process and maximize your savings.\n*   **Know your budget.** Remember, new cars are more expensive than comparable used ones, so you'll want to check your budget to determine what you can afford. Dealers may try to focus your attention on the monthly payment, and get you into a more expensive car by extending the length of loan term. You'll want to consider the sales price and the total cost after finance charges, as well as the total amount of interest you'll pay over the course of the loan. A longer loan term may, in fact, lower your monthly payment, but it could cause you to pay thousands more in interest over time if it means paying off your loan for an extra one, two or even three years.\n*   **Shop around for auto loans.** Dealers can arrange financing, and if you qualify for a 0% APR promotion, that may be your best bet. But it's still a good idea to shop around for an auto loan before you head to the dealership. Checking with three to five lenders, such as the financial institution you already bank with, will not only give you an idea of what you can expect with rates but also potentially give you some negotiating power with the lenders the dealer uses. Securing financing on your own before you go into the dealer will give you a hard price limit, which provides even greater negotiating power.\n*   **Do your research on models.** Take some time to research new cars online in your area to understand what the prices are and whether some dealers are offering promotions, such as 0% APR financing or rebates. Depending on what you can find, doing a little legwork could save you hundreds or even thousands of dollars.\n*   **Negotiate with the dealer.** Depending on the situation, there might not be a lot of wiggle room in the price of a new car, but it doesn't hurt to try. You can potentially gain some leverage by visiting the dealership at the end of the month or quarter when salespeople are scrambling to meet sales quotas. Doing your research before you head to the dealership will also help you because you'll have offers from other dealers on hand to compare.\nIf you're in a time crunch, you might not have a lot of time to go through these steps, but doing at least a little of each could make a difference in your costs. Ideally, you'll start shopping for a new car when you don't necessarily need one, so you'll be able to walk away from deals more easily and wait for the right one. END