---
title: Smarter Shopping Can Save You Thousands on a New or Used Car
description: Save thousands on your next car purchase with these smart shopping tips, including research strategies, timing, and negotiation tactics.
---

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# [Smarter Shopping Can Save You Thousands on a New or Used Car](https://www.tropicalfcu.com/blog/smarter-shopping-can-save-you-thousands-on-a-new-or-used-car)

 Written by [Tropical Financial Credit Union](https://www.tropicalfcu.com/blog/author/tropical-financial-credit-union) | September 27, 2024

If you’re looking for a new or used car, the good news is that prices have fallen in the past year. But if you haven’t been car shopping in 5 or 10 years, be prepared for sticker-price shock.

The average price of a new vehicle was just over $47,000 in January, according to Kelley Blue Book. That’s up nearly $10,000 from five years earlier.

In contrast, the average price of a used car in July was $25,415, still higher than $20,200 in mid-year 2019.

How can you pay the least on a vehicle and get help financing it? One key: Focus on the purchase price, not the monthly payment.

In an ideal world, you would pay on the spot for a new car and eliminate loan interest charges. Some dealerships offer price discounts for cash. If you’re not in a position to buy a vehicle without financing, here’s your roadmap.

**Start with research. **The more you know about the market price of a vehicle, the better you are able to tell the difference between a good deal and a bad one and negotiate with a salesperson to get the price you want. Websites like [Kelley Blue Book](https://www.kbb.com/) and [Edmunds](https://www.edmunds.com/) produce prices that match your vehicle's criteria for make, model, year, and options.

**Time your purchase.** Shop at the end of the model year. Dealers like to clear out on-the-lot cars to make way for the newest ones in the last four months of the calendar year.

**Buy a used car.** New cars depreciate rapidly, especially in the first two years. Here’s an example from Edmunds on the most popular SUV in 2024, the Toyota RAV 4 LE. You can expect it to lose $5,037, or 15% of its cash price, in the first year, assuming you drive it 15,000 miles. It will drop another $1,680 in the second year for a total depreciation of 20%. Used cars lose value slower, giving you more car for your dollar over the long term.

**Negotiate price, not payments.** A salesperson may ask how much you can afford and stretch your payments to 6 or 7 years to qualify you for a loan. Armed with price information and lender pre-approval, you will be in a stronger position to name your price.

The lower the price, the less you borrow. If you qualify for a shorter loan term, you’ll save on interest and be out of debt sooner.

If you are looking to buy a new or pre-owned vehicle, make plans to attend Tropical Financial’s on-site car sale Oct. 19-20. The credit union’s car shopping partner, Auto Advisors, pre-negotiated prices on over a hundred different vehicles so you won’t have to haggle. You can also save money on gap insurance or get a lower interest rate on a loan, and payments are deferred for 90 days.

[View full post](https://www.tropicalfcu.com/blog/smarter-shopping-can-save-you-thousands-on-a-new-or-used-car)

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