The best days to buy a car are typically Mondays, Tuesdays, or Wednesdays, as dealerships are less busy, giving you more salesperson attention and negotiation time; you want to avoid busy weekends, but for big holiday sales (Memorial, Labor Day), the weekend can be great, and the end of the month (especially the last few days) is also a prime time for deals as dealers try to hit quotas, says Autotrader and Ally.
To get the best deal, avoid saying you love the car, are desperate for a vehicle, don't care about the total price (only monthly payments), or are an expert in your job/credit, as these reveal weaknesses; instead, focus negotiations on the out-the-door price, stay vague about your needs, and show you're willing to walk away to maintain leverage.
The 20/3/8 car rule is a financial guideline for buying a car, suggesting you put down 20% of the price, finance it for no more than 3 years (36 months), and keep your total monthly car expenses (payment, insurance, etc.) to 8% or less of your gross monthly income. This rule helps you avoid being "underwater" on your loan, pay less in interest, and maintain a healthy budget for other financial goals like savings and investments, focusing on affordable, reliable transportation rather than luxury vehicles.
The Best Days of the Week to Buy a Car
Here's why: Monday to Thursday: Fewer customers mean the sales team can give you more attention. You won't feel rushed, and they may have more time to talk about pricing or special offers. End-of-month: This is when dealerships might be trying to hit their monthly goals.
The FTC Red Flags Rule requires auto dealerships to have a written Identity Theft Prevention Program (ITPP) to detect, prevent, and mitigate identity theft, especially in financing/leasing, by spotting signs like suspicious documents (altered IDs, mismatched photos), inconsistent application info, or unusual account activity, with consequences for non-compliance including hefty FTC penalties and lawsuits, notes the Federal Trade Commission. Key steps involve identifying vulnerable accounts, spotting specific "red flags," creating detection/response plans, training staff, and regular audits, with a senior manager overseeing the whole program, say Dealertrack and Total Dealer Compliance.
Dave Ramsey's core car buying rule is to pay cash for a reliable used car, avoiding debt and new car depreciation; he suggests only buying new if you're a millionaire, and generally, the total value of all your vehicles shouldn't exceed 50% of your annual income. His philosophy emphasizes buying what you can afford outright, viewing cars as depreciating assets that shouldn't trap you in debt.
A little preparation, and knowing some of the common car dealer tricks used by salespeople, can help you close on a car with confidence.
The ploy, “Let me go talk to my manager" is called a T O or a turn over. Most dealerships require that a salesperson do a T O before letting the customer leave, in other words, if they cant close the deal then they turn it over and let someone else try.
For years, dealerships have been using a tactic called a “four square”—a sheet of paper divided into four boxes where the salesperson will write down your trade value, the purchase price of the vehicle you're buying, your down payment, and your monthly payment.
Toyota, Lexus, and Subaru consistently rank as the most reliable car brands, frequently topping lists from Consumer Reports and J.D. Power, followed closely by Honda, Mazda, and luxury brands like Porsche and Buick, with Japanese and Korean brands generally dominating, while American brands like Buick and Cadillac show strong spots in some reports. These brands focus on proven technology and incremental improvements, though new model redesigns can temporarily affect ratings.
Depreciation. Cars reportedly lose 20% of their value in the first year of ownership and retain just 40% of their original value after five years. Clearly, that is not a good investment. “Your goal should be to buy the least expensive car. Period,” said Orman. “That should steer you to a used car rather than a new car. ...
The best way to finance a car involves getting preapproved from a bank or credit union before visiting the dealership to compare rates, making a significant down payment (15-20% is ideal), keeping loan terms shorter (around 48-60 months), and negotiating the total car price separately from the financing, allowing you to get a lower interest rate and save money long-term. Leasing or other options like PCP/HP exist, but a direct loan with good credit offers the most equity.
Beyond the monthly payment, you'll also face years of variable expenses like car insurance, gas, maintenance and taxes, which can spike without warning. By considering these costs before buying a new or used car, you'll be better prepared for the financial ups and downs of hidden car ownership costs.
A good monthly car payment is generally 10% to 15% of your take-home pay, but the ideal amount depends on your full budget, including insurance, gas, and maintenance, with total transportation costs ideally staying under 20% of your income. A simple guideline is to keep the loan payment itself below 15% of your gross income, or 10-15% of your net (take-home) income, but always factor in other car-related expenses for a realistic budget.
You'll save money.
Unless your loan has precomputed interest (more on that below), extra principal payments can help reduce the total amount of interest you'll pay.
Left unchecked, it can lead to expensive repairs or even brake failure. How Often Should Brake Fluid Be Changed? Because brake fluid absorbs water over time, it should be serviced every 30,000 miles or every 3 years, whichever comes first.