AAA Offers Money-saving Tips For New Car Shopping

Thinking about buying a new vehicle? 

According to a new survey by AAA, the average yearly cost to own and operate a new vehicle in 2022 is $10,728, or $894 per month.  That’s an 11% increase from 2021, when the average yearly cost was $9,666 or $805.50 per month. 

Not surprisingly, fuel prices are the most significant factor pushing this year’s average annual price tag.

AAA recommends car buyers follow a few steps before going out to the dealership:

Start early! Due to limited inventory, consumers may have fewer choices regarding a specific vehicle model. You may have to wait for delivery or even pre-order the vehicle of their choice.

Obtain pre-approval from your financial institution (e.g., Bank, Credit Union, AAA, etc.) before discussing finance rates with the car dealer.  Buyers can use their pre-approval to negotiate if the dealer offers a higher rate.

Create a budget and factor in the different elements of ownership – not just monthly payments. Other factors to consider when making the budget include insurance, gas, routine maintenance, etc.

Call your insurance agent to compare potential rates for your top choices and how they compare to your current vehicle.

Typically, three negotiations occur when purchasing a vehicle – the cost of the car, the finance rate and the trade-in value. Keep each transaction/negotiation separate from the other.

Another tip that could save you money would be to check out your car dealer’s pre-owned inventory.

AAA has just launched an online Your Driving Costs Calculator. 

The tool enables consumers to determine the overall driving costs of a specific vehicle. 

When visiting the site, consumers can select their desired state, annual mileage and driving ratio that represents their normal driving habits, and vehicle year/make/model/trim.

This online tool employs the same methodology as AAA’s annual analysis of new car ownership. 

Data is available for new and used vehicles (five model years back), and consumers may customize the results based on location, fuel price, and other personal driving tendencies.