Cramer: 6 Ways To Get The Best Deals On Wheels

One silver lining in a lousy economy is that, if you have the cash, getting a deal on a new car is easier than getting a mosquito bite at a Bill Gates speech.

Only it’s not as painful.

The numbers, as usual, tell the story. Research shows that the Big Three have the capacity to build about 16 million cars. But consumers aren’t co-operating – the trends show that we’re only going to buy about nine million cars this year (compare that to 2005, when 17 million cars were sold in the U.S.)

While the TV cameras have been focused on testimony from Big Three auto executives over big bailout packages, seemingly under the surface, car companies are rolling out incentive packages designed to move cars off of loading docks and into American driveways.

Consumer Reports points to the $6,750 total cash-back deal for GM’s 2008 Buick Lucerne (Stock Quote: GM) – a 28% reduction in the original sticker price. Or how about 18% off the sticker price on a 2008 Ford F-150 XLT 4x4 SuperCrew (Stock Quote: F)? Consumer Reports has a complete list of some of the best new auto vehicle deals – it makes for great reading.

Can you get an even better deal on a new car? I think so, and it’s certainly worth a try if you’re in the market for a new car or truck.

In fact, after pouring over my research on the subject in the usual, thorough, Cramer-like fashion, I’ve got some specific ideas on how to cut the best deal:

1. Show them the money – Auto dealers really perk up when they find out that you have the cash right away, or are pre-qualified for financing before you walk in the door.  Hence, they’re more likely to deal with what the industry calls an “attractive buyer.” Plus, being pre-approved from a local bank gives you leverage in your new car negotiations. Consider a $25,000 car loan at 6.5% that your bank has okayed. With that offer in your back pocket, you go into the discussion with your auto dealer, who may be offering the same loan at 7.5%, in a better spot. Another pre-dealer tip: get your credit score in order, so that issue is taken off the table (get a free credit report here). With your finances in order, you’re dealing from a position of strength – especially to a cash-starved industry that can’t afford to see you walk away without a new car. For the best local bank auto interest rate deals, visit BankingMyWay.com.

2. Go incentive shopping – You can really strike while the iron is hot if you do your homework first. That’s particularly true of incentive programs. Often, car-shoppers make the mistake of assuming the dealer is the one offering new car incentives. They can, but the best deals usually come straight from the automaker. That means the incentives don’t cut into the dealers profit (it cuts into the automaker’s profit margin) and leaves more room for negotiating – another short cut to a great car deal.