Chip shortages, supply chain bottlenecks, and dwindling used car inventory has forced many car dealers to escalate the prices on their new vehicles and throw added incentives at car shoppers seeking previously loved vehicles.
A new ride doesn't have to be fresh from the factory. Once a brand new car leaves the lot, it depreciates when it leaves the dealership lot. But purchasing a pre-owned Ford is often just as good as owning a brand new one – if you know how to shop.
What To Look For in a Pre-owned Vehicle
In a pre-owned vehicle, you may be able to get that premium model you have been looking at but weren’t able to afford. However, sometimes going for an older model will save you money in the long run.
On Ford’s website, it may be wise to check out their pre-owned inventory because it may often save you thousands of dollars, and you may get something even better than you imagined.
For pre-owned vehicles, they have a program called the Ford Blue Advantage. What does this mean?
The Blue Advantage means that used vehicles must pass a detailed multi-point inspection before becoming Gold or Blue Certified. Each car will feature a comprehensive limited warranty, 14-day/1,000-mile guarantee, 24/7 Roadside Assistance, and FordPass Rewards points eligibility. With new vehicles, they come with similar incentives.
Ford offers the Blue Advantage online shopping tool to help you find your ideal vehicle.
Discounts They Don’t Disclose
Ubaldo Perez, a Miami-based entrepreneur who launched HUSH, a line of topical anesthetics developed specifically for tattoos in 2009, has owned a few Ford vehicles in his lifetime.
Perez plans on purchasing another vehicle shortly, and when it comes to researching cars, people often go to him for advice.
“I let them know that the Ford A and Z plans offer savings plans and discounts to Bill Brown Ford employees, retirees, and relatives,” Perez said. “This is something I’ve been able to take advantage of.”
He also said that many people are related to Ford employees and have no idea that this opportunity even exists.
In addition to these discounts, current Ford Motor Company shareholders who have at least a hundred shares of Ford Motor Company stock for at least the past six months are offered a “Friends and Neighbors” pricing discount, according to Perez.
The discount depends on the vehicle, but it’s comparable to the deal that Ford employees get.
“If you’re going to purchase a vehicle, you may invest in the company,” Perez said.
Trade-in Your Current Vehicle?
You may want to consider trading in your current car for a newer Ford. Depending on the model of your vehicle, it may be worth more money than you think. Often, dealerships will give you a higher trade value for your car because they want you to purchase a newer vehicle.
The process is simple. You have to start by going to the dealership you are interested in and telling them you want to trade in your car.
Dealership employees will give your car a test drive and appraise its value. Generally, after this, they will offer you an offer, which will go toward buying the new car. If you accept their offer, you will conclude the deal by signing the car’s title or lease.
The advantage of doing this is making the transaction happen all in one place, saving you from going to another place and causing more of a headache.
Savvy car owners know that driving your old car to the dealership and your new car home all from the same place is the most efficient way to go. In addition, you should have a preapproved financing deal from a bank or credit union already in place, as that is the most recommended way to go.
You can have a car loan arranged by a dealership, but higher costs may be associated with much higher interest rates. The dealer has little to no incentive to find you a loan that’s a good deal.
In many ways, the dealer can be a one-stop shop for finding a new car, securing a car loan, and trading in your old car, but you should still make sure you’re getting a good deal in each component of the transaction.
If you decide to sell your car to another dealer or a third party, you may have to drive to several locations to complete the deal. You will also have to negotiate the price you will see the car for entirely separately from the new car purchase. Most buyers know that it’s a good idea to keep the costs separate, so you know that you’re getting the best possible deal on your new wheels purchase and the sale of your used car.
The Dealer Will Pay Off Your Existing Loan
You can trade in a vehicle, even if you still owe money on a loan. It is prevalent for buyers to change their cars while paying off the loan balance. If you have positive equity in the vehicle, it will be used as a downpayment toward your new purchase. This can save you a lot of money.
Buying a Ford From the Previous Year
One final way to get a new Ford is to buy a model from the previous year. Generally, new Ford models will come out in the fall, although some, like the anniversary Mustangs, come out on “half-years.” That means you can snag a deal on previous year ones just before the new models hit the showroom floor.
Dealerships look to get rid of their 2022 stock when the 2023 inventory comes in. So when you visit a showroom, always ask the dealer to show you the 2022 models like the new year ones will be out in just a few short months. By looking at older models, you should be able to negotiate a price.
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This post was produced and syndicated by Wealth of Geeks.
Image Credit: Unsplash.