Buying a car is one of the biggest financial decisions most people make. But not everyone walks into the dealership with the same game plan. At CarEdge, we’ve seen the best and worst of car buying strategies — and let’s just say some deals are smarter than others.

Whether you’re buying, leasing, shopping new, or going used, here are the smart moves we recommend — and the costly mistakes to avoid.

5 Things Smart Car Buyers Do

1. Get Pre-Approved Before Visiting the Dealership

Smart buyers always secure financing ahead of time. This gives you a baseline to compare against dealer financing, strengthens your negotiating position, and protects you from inflated interest rates.

How to Get Pre-Approved Like a Pro

1. Check your credit score
   Lenders use it to determine your rate. Knowing it helps you estimate what you’ll qualify for.
   
2. Compare rates from multiple sources
   Look at credit unions, banks, and online lenders. Even a 1% difference in APR can save you hundreds (or thousands).
   
3. Apply for pre-approval
   Most lenders let you apply online in minutes. A soft credit check is usually enough to see your rate.
   
4. Know your loan terms
   Look beyond the monthly payment. Consider the loan length, APR, and total amount financed.
   
5. Bring your pre-approval to the dealership
   Use it as leverage. The dealer may offer better financing to win your business — just be sure to read the fine print.

Finance your car like a pro with this Free Financing Cheat Sheet

2. Use Data to Determine a Fair Out-the-Door Price

Smart shoppers don’t stop at MSRP. They research the true market value, calculate taxes and fees, and request the final out-the-door price upfront — often by phone or email. As long as you share your ZIP code for tax and fee calculations, there’s no reason a dealer can’t share their out-the-door price. 

Concerned about your trade-in? Tell them you want to treat that as a separate transaction, and it shouldn’t impact the OTD price. 

3. Time Their Purchase Strategically

Want a better deal? Smart buyers shop at the end of the month, end of the quarter, or during model year transitions. Dealers are more motivated to close deals when sales targets are on the line.

See the slowest-selling cars in America. These models are highly negotiable!

4. Negotiate Every Line of the Deal

It’s not just about the price of the car. Smart buyers also negotiate:

• The value of their trade-in
  
• Dealer add-ons
  
• Financing and F&I products like warranties or GAP
  

Take these FREE Cheat Sheets with you to the dealership – you’ll be glad you did!

5. Think Like a Pro When Leasing

Smart lessees understand their contract’s money factor, residual value, and capitalized cost — not just the monthly payment. They negotiate the selling price just like a cash buyer and always request the lease worksheet before signing.

Sound intimidating? No worries — Here’s our Complete Guide to Leasing a Car

5 Mistakes Uninformed Car Buyers Still Make

1. Focusing Only on Monthly Payments

A low monthly payment might look good, but it often hides a bad deal. Uninformed buyers don’t calculate total cost — or worse, they fall for 84-month financing just to “make it work.” Car salespeople are trained to manipulate loan terms so that even buyers with poor credit and little money for a down payment can get into a car that’s outside their budget. Financially, this is a recipe for disaster. 

Every car buyer should focus on one number: the out-the-door price. The OTD price is not just the selling price of the car, it also includes taxes and fees so you know how much you’re really paying. Check out our free OTD price calculator for real-world examples.

2. Walking Into the Dealership Without Research

The worst way to start a deal is blind. Shoppers who skip research are more likely to overpay, fall for sales pressure, or miss out on available incentives.

Luckily, we’ve got exactly what you need to do your research. Here are just a few of our best free resources:

Free Original Window Sticker – Know ALL about the vehicle before you head to the dealership.

Check for the latest incentives – See 0% APR financing, cheap lease offers, and cash deals.

See how your car ranks – Compare depreciation, maintenance and insurance costs, and more with CarEdge’s Research Hub.

Car Buying Calculators – From car loan calculators to depreciation forecasts, and everything in between.

We’re on a mission to demystify car buying, selling, and ownership for all. We’ve got car buying help for every budget.

3. Trading In Without Knowing Their Car’s Value

Smart buyers use tools like CarEdge’s Car Value Comparison tool to know exactly what their vehicle is worth. The uninformed? They let the dealer set the price.

Always treat your trade-in as a separate transaction. Expect the dealership salesperson try and force the transactions together, but make it clear you’re not interested in that.

[Free Guide] Car Trade-In Tactics for Success

4. Signing a Lease They Don’t Understand

A “sign and drive” lease might seem simple — until you get hit with overage fees or lease-end penalties. Always review the full lease terms and avoid large down payments.

Avoid Costly Mistakes with These 7 Cheat Sheets, From Leasing to Buying & More!

5. Assuming Used = Cheaper

Not always. Some used vehicles cost more to finance than new ones — and buyers often skip vital checks like accident history, open recalls, or a mechanic’s inspection. Learn more about the importance of a pre-purchase inspection. Don’t get stuck with an unreliable car!

In 2025, the average used car loan rate is about 14% APR. That’s about 5% more than new car loan rates. Car buyers with excellent credit can even qualify for zero percent financing on select models. Always consider the total cost of ownership before deciding which vehicle is best for your budget.

Final Thoughts

Car buying doesn’t have to be intimidating — but it does require a plan. Whether you’re buying or leasing, the smartest thing you can do is show up informed and ready to negotiate.

Need help getting the best deal?
📞 Talk to a CarEdge Concierge for white-glove service — have us negotiate your deal from start to finish!
📊 DIY negotiators save BIG with CarEdge Insights. See local pricing and market trends before you buy.