How to snag a bargain on four wheels

It’s also worth shopping for a car at the end of the year to take advantage of year-end deals offered by manufacturers, Champion said. There might be special incentives for models that are in a battle to be the sales leader in their category, he said.

When negotiating with a car dealer it also helps if you know how much the dealer has paid for a car so you can negotiate from the base price rather than from the Manufacturer’s Suggested Retail Price, or “sticker price.” The price paid by the dealer can be found online at Web sites such as ConsumerReports.org.

“The big thing about buying a new car is homework, homework, homework,” Champion said. “Don’t forget that everything is negotiable.”

It’s also important to be practical, Champion added. If you have a boat and use it once or twice a year, don’t buy a vehicle just to tow it. Instead, rent a pickup when you need to tow, put the wear and tear on that vehicle and settle for a sedan the rest of the year, he said.

“Buy the best appliance for the cheapest amount of money,” said Champion. “That’s especially important now because of the economic climate; the price of gas is high and the amount of disposable income you have is going to be reduced even further if gas costs go higher.”

A used car is a good investment, Champion said. Many cars can go for up to 200,000 miles without any repairs, he said, and so if you find a good used car with 40,000 miles on the clock it could be trouble-free for another 160,000 miles. That could represent a significant saving, he said.

“A good quality used car is probably one of the best deals out there,” he said.

In the current economic climate, you might also consider holding on to the car you already have for a little longer, counsels Edmunds.com’s Reed.

“If you trade in your SUV for a Prius because you want to save on gas prices it’s a mistake, because when you change vehicles there are related fees such as sales tax and DMV fees, and they are costs people don’t tend to think about,” he said.

He notes that Americans spend about $1,200 a year to gas up their cars, on average. So it might not make financial sense to spend $1,800 or more in taxes and fees to dump a gas-guzzler and buy a new Prius.

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