With new-vehicle prices hovering near record highs and monthly payments consuming a growing share of household budgets, many shoppers are looking for ways to make every car-buying dollar go further. And with ample options for where, when and how to buy, it’s not hard to do. The car experts at Edmunds have compiled their five top strategies to help reduce the overall cost of your next vehicle purchase.

One of the simplest ways to stretch your budget is to expand your search beyond brand-new models. Sure, new vehicles offer the latest technology features and are backed by a full warranty, but they also carry disproportionately higher prices.

You’ll find better value in the used market, particularly when shopping for vehicles that are just a few years old. A lightly used vehicle can often offer many of the same features as a new model while avoiding the steepest period of depreciation. According to Edmunds transaction data, the average price of a 3-year-old used vehicle in June 2026 was $32,553, compared to $48,899 for a new vehicle.

Limiting your search to nearby dealerships can unnecessarily reduce your options. Shoppers willing to travel farther from home often find a greater selection of inventory and more competitive pricing. Prices can vary considerably from one county to another based on local demand and supply.

Something similar is true for a loan. Don’t wait until you’re in the dealership finance office to think about a loan. Unless you’re getting a promotional interest rate from the automaker’s finance company, there’s a good chance a credit union may offer you a better rate than the banks the dealership has partnered with.

Instead, get a preapproval from your bank, a credit union or an online lender and compare it against the dealer’s best loan offer. Comparison shopping for loans can often save thousands of dollars over the life of the loan, according to the Consumer Financial Protection Bureau.

Your current vehicle may be worth more than you think, and maximizing its value can significantly reduce the amount you need to finance. Get multiple trade-in offers before visiting a dealership. Online appraisal tools and used vehicle retailers can provide baseline estimates that help establish a vehicle’s market value. Having several offers in hand can strengthen your negotiating position and help prevent unknowingly accepting a low trade-in value.

It’s also worth considering a private-party sale. While selling a vehicle yourself requires more time and effort, it often generates a higher return than a trade-in. Buyers who choose this route should gather maintenance records, clean the vehicle thoroughly, and address minor cosmetic issues that could affect perceived value.

When a salesperson starts asking about a monthly payment you’d feel comfortable with, it’s easy to miss the big picture. But don’t let that distract you. Adjusting to a lower monthly payment might seem appealing, but it often comes at the cost of a longer loan, leading to more interest charges and a higher total paid over the life of the loan.

It’s best to examine the entire financing package, including your down payment, your trade-in, the interest rate, loan term and the total cost. A shorter loan with a slightly higher monthly payment can save thousands of dollars in interest. Comparing financing offers on this basis rather than on the monthly payment alone provides a clearer picture of the true expense.

Inflated vehicle prices during the pandemic, longer loan terms and impatient shoppers have increased the risk of negative equity, a situation in which a borrower owes more on a vehicle than it is worth.

According to Edmunds’ data, 30.9% of trade-ins toward a new vehicle purchase carried negative equity in the first part of 2026. Moving negative equity into a new loan may make a car purchase possible, but it increases the loan amount and makes it harder to build equity in the replacement vehicle.

A better strategy is to wait until you can make a 10% to 15% down payment, according to Edmunds. If you’re getting the itch for a new car and currently owe more than your car is worth, the smarter move is to keep it longer and pay down the loan balance before trading it in. This patient approach can help prevent a cycle of carrying debt from one vehicle to the next.

Stretching your car-buying dollars in 2026 requires looking beyond the sticker price. Before signing any paperwork, ask to see a breakdown of all the fees. If you spot any fees or services you aren’t familiar with, be sure to ask the salesperson. Otherwise, you may overlook something that could prove costly in the long run.

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This story was provided to The Associated Press by the automotive website Edmunds. Josh Jacquot is a contributor at Edmunds.