Buying a Car: How to Save Up to 20 Percent on New Cars

Lately, new car prices have known only one trend: going up. Even if there’s relief on the horizon – you don’t have to part with any money when buying a car.

New cars are more expensive than ever: according to Deutscher Automobil Treuhand (DAT), they have increased by €5,000 in a year – from €37,790 to €42,790 (plus 13 percent). All-time high: Ten years ago, a new car cost an average of €27,030. By the way, it’s even worse for used cars: the average value has increased by 19 percent from 15,740 to 18,000 euros. In 2013 it was 9,420 euros. So, 50 percent of the respondents are afraid that they will not be able to buy the car in the long term (you can learn more about this here).

If you want to get your new car as cheap as possible, you can follow a few simple tips. In addition to negotiation skills, there is one thing above all else that helps when saving: flexibility.

If you are looking for a cheap new car, you should start online. This is the easiest and fastest way to compare prices for individual models. The official list price, which usually represents the higher end of the range, can be found on the respective manufacturer’s website.

With brands like Polestar or Tesla, which sell only online, or with the budget brand Dacia, there’s usually no room for negotiation – what’s convenient gets paid for.

The situation is different for brands that have an independent dealer network. Each company could theoretically offer the price of their own home. This can be searched on one of the many new car brokerage portals such as “Carneoo”, “Carwow”, “Alles.Auto” or “Neuwagen24”. Dealers advertise individual models there, sometimes at double-digit discounts. In December 2022, a survey by the Center for Automotive Research (CAR) included up to 20 percent off the list price.

These are the models with the highest discounts right now:

Naturally, the biggest discounts are for older, less popular models, while many newer models are still sold without a discount. So: If you’re flexible when choosing a model, you can easily save four-figures over a similar car.

If you don’t want to buy from a faraway dealer through an online broker, but would rather buy close to home, you can simply use the rates researched to negotiate with the local company.

Some basic knowledge about selling new cars in Germany also helps here: local dealers sell new cars at their own expense, but they receive certain bonuses from the manufacturer, some of which can also be passed on to a good negotiating buyer. For example, there is often extra money for new customers if they are stolen by competition – the so-called conquest bonuses. Also at the end of the quarter, discounts get more and more generous, since the conditions dealers buy from the manufacturer are often based on quarterly sales.

Price negotiation tip: Friendliness matters. Retailers are more likely to give discounts to friendly customers. Find a level for the conversation, be realistic about thoughts of cuts, but don’t get discouraged by the first “no.” Negotiation and potential setbacks are part of buying a car.

If nothing can be done about the pure car price, deductions in kind may still be possible. These can range from floor mats to free screening packages. In the case of e-cars, a free charging cable can be negotiated.

If you are flexible when it comes to outfitting your car, you can save a lot of money with daily registrations. These are new cars that dealers are allowed initially for one day. On the one hand, this improves stats, and on the other hand, it enables subtle discounts beyond the usual range without messing with the brand’s price structure. The cost advantage over a new self-configured car is enormous: a discount of 20% or more is possible. The hook: When it comes to equipment, color, or engine, take what’s currently in the yard.