New and used cars: Strategies for saving money when buying in 2024

CHICAGO - Now that it's a new year, many people are on the hunt to replace their car. And whether you're shopping new or used, there are plenty of ways to save a few bucks.

In a FOX 32 special Money Saver report, we're getting some tips from the experts. The car-buying landscape has shifted post-pandemic.

"So the good news is that most of the production slowdowns that occurred during the pandemic have eased. And so there are more cars available," said Kevin Brasler, executive editor at Chicago Consumer’s Checkbook.

Brasler says that means if you're buying new, you'll have flexibility to negotiate when it comes to price.

"It’s better to contact by email or by phone," he said. "Tell them, this is the car that I want to buy. These are the options I think I want. What’s your price going to be? And oh, by the way, you only have one chance to bid for my business. I’m going to contact other dealerships and offer them the same arrangement. And tell them I’m going to buy from the dealership that’s going to offer me the best deal."

Mike Quincy is the automotive writer and tester for Consumer Reports.

"The best advice that I have about buying a car is don’t fall in love," he said.

Quincy recommends keeping an open mind and not committing to only one option, which can lead to you missing out on a deal.

"Be ready for alternatives. There’s so many good cars out there, that you don’t have to be stuck going for one particular make and model," Quincy said.

He also recommends considering taking a look at some of the leftover 2023 car models at the dealer if you’re hoping to save on your purchase.

"They’re still brand-new cars. They’re technically a 2023 model. So if you can identify a good-performing reliable model, like a leftover Camry or an Accord or Nissan Altima, you can have significant savings," Quincy said. "It can be several thousand dollars off depending on the dealer and the particular car that you’re interested in."

If you’re looking for savings on a used car, even a somewhat recent model year can amount to some big savings.

"So if you buy a two or three-year-old used car, it’s already depreciated at its maximum rate. There’s still probably a little bit of factory warranty left over," Quincy said.

"It is really important before you commit to buying a used car that you have an independent mechanic check it out. Do a thorough check to make sure anything that needs to be fixed is known," Brasler added.

And when it comes to finding savings on financing for your new ride, doing your homework is key for getting a deal.

"It’s important to go in in advance with your own proposed financing," Brasler said. "They may offer you something better, which is great. But at least you go in armed with knowing what’s a fair interest rate to pay."

"One of the best places to go is your local credit union," Quincy added. "If you’re not a member, join a credit union. You can often get really good deals on the way."

Quincy says savings can also come if you’re realistic about your finances prior to picking out a car.

"We would strongly encourage people not to take out super long loans," he said. "Try not to overbuy. Try to put down as much upfront as you can to reduce your overall payments."

Another important tip from the experts is to make sure there aren’t any open recalls when you’re looking to purchase a used car, to make sure you are aware of any concerns down the road.