Checked the sticker prices on new vehicles lately? Brace yourself. According to Cox Automotive's mid-year report, the average closed sales price was slightly less than $49,000.
More bad news: According to recent reports from Kelley Blue Book and CNBC, the new U.S. 25% tariffs on imported vehicles and auto parts are impacting new cars. Prices could soon rise anywhere from $2,000 to $15,000 per vehicle. Among vehicles on sale for less than $40,000, the sticker price could jump as much as $6,000.
If you’re in the hunt for an EV, know that the $7,500 tax credit on a new electric car or SUV will end on Sept. 30. So, whether you are hunting for a new gas, hybrid or electric vehicle, you can still get a good deal. Here’s how:
- Know how much you can finance. Secure pre-approval from Tropical Financial Credit Union, which has some of the lowest rates in South Florida. Speak with an advisor about your budget, credit rating, down payment, and other factors that go into calculating your loan terms and monthly payment. That information is power when you are negotiating with a salesperson.
- Learn a vehicle’s actual market price. Use resources like Consumer Reports, Edmunds and Kelley Blue Book to get accurate figures and compare them to dealers' quotes.
- Ask about incentives. According to Kelley Blue Book, they averaged about 7% on vehicles manufacturers were trying to move in May.
- Ask about tariffs and EV tax credits. A vehicle already on the lot will likely have arrived from overseas before the import tariff went into effect, so it should cost less. If you are considering an electric vehicle, ask whether a purchase now or in August will still qualify for the EV tax credit.
- Shop around. Factors such as inventory and sales goals create significant price differences. The best deal may be in a nearby county. After you get the lowest offer in writing, ask other dealers to beat that figure.
- Talk price, not payment. Compare dealerships based on what’s called the “out-the-door” price, which includes all fees, taxes, and add-ons. Once you have the total, ask your Tropical Financial loan advisor about financing and compare that to what the dealer is quoting.
- Buy late (in the month or quarter). Dealerships have sales quotas and finance their inventories. The closer they get to their deadlines, the more motivated they are to make you a better offer.
- Price your current vehicle. Research what your car, truck or SUV is worth as a trade-in or sale to a dealership on websites such as Edmunds, Kelley Blue Book and NADA. Negotiate the price of your new car first. Then, when discussing a possible trade-in, compare what that dealer will pay to what the vehicle is worth on the market. You may want to sell your used car to a different dealer.
- Don’t be rushed into buying. Patience can help you secure a better deal.
