The average new car buyer spent more than $49,000 on their vehicle in January, but you don't have to pay that much, even for a new vehicle.
Kaitlin Fields found success by shopping during the winter months instead of waiting for spring.
"People are probably looking for cars more in the springtime, and the summer," Fields said.
RELATED STORY | New car prices hit historic high as average cost surpasses $50,000 for first time
Do: Shop soon for better inventory
Graham Wyler of the Jeff Wyler Automotive Family offered us several tips for getting a better deal on a new car.
Wyler recommends shopping now while inventory remains high during winter months, and dealers work to hit sales goals before the springtime sales rush.
"Right now, Nissan is offering $3,500 off," Wyler said.
Do: Consider trading in your current vehicle
With used cars commanding top dollar, trading in your current vehicle can provide significant value.
"If you have one that's three to five years old, now is the best time to trade it in," Wyler said.
However, research your car's worth before negotiating.
Maybe: Buy new for better financing rates
New car financing rates are much lower than used car rates, making new vehicles more attractive for buyers who qualify.
However, experts warn against financing more than you can afford, even with attractive rates.
Don’t: Take out longer loans
According to Kelley Blue Book, the average new car buyer paid $49,191 in January. This high price point pushes many buyers toward longer loan terms.
A LendingTree study found nearly half of borrowers, 47.5%, carry loans for 72 months or longer. The study also found about 5% of borrowers pay $1,000 or more per month for their car payment.
"Anybody who's financing a car for 72 or 84 months, that's a good sign that you picked a car that's too expensive for your budget," said Brian Moody, executive editor for Kelley Blue Book.
Do: Finance within warranty periods
Moody recommends financing vehicles that remain within their warranty period to avoid paying for both monthly payments and major repairs.
"That way you're not on the hook for payment and repairs should that come up," Moody said.
Do: Know affordable options exist
As part of its annual Best Buy Awards, Kelley Blue Book recently highlighted several new cars and trucks in the $25,000 to $35,000 range, including the Ford Maverick, Honda Civic and Nissan Leaf.
"If you want a full-size truck-based luxury SUV, there's no discounts on that. Sorry, that's what everybody wants. But if you want a great deal, look at a small sedan or a hatchback and you can probably find something in your price range," Moody said.
By being flexible, and securing a good price before spring buying season, car buyers can avoid paying average market prices.
That way, you don’t waste your money.
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