I Asked ChatGPT How To Save Money When Buying a Car: This Is What It Said
Written by
John Schmoll
Edited by
Jenna Klaverweiden
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Purchasing an automobile is often the second-largest purchase Americans make. Unfortunately, the cost of buying a new car is becoming more expensive. The average new vehicle transaction price was above $50,000 for the first time in October 2025, according to Kelley Blue Book. Worse yet, tariffs have driven some costs up further, making it more challenging for Americans in the market for a new car.
GOBankingRates asked ChatGPT for the best ways to save money when buying a car. Here’s what the artificial intelligence (AI) chatbot recommended to reduce overall costs when buying a car.
Don’t Start With the Monthly Payment
Having a budget in mind is key to saving money at the dealership. Part of this is knowing what kind of monthly payment you can afford to stay within your means. Don’t share this information with the salesperson or dealership; rather, inform them of the total cost you can reasonably handle.
“It’s easy to get distracted by what looks like an affordable monthly payment, but that figure often hides a longer loan term or higher interest rate,” ChatGPT said.
Moreover, avoid the temptation to extend your loan to six years or longer. While it may reduce the monthly payment, you will spend significantly more in interest over the life of the loan.
Get Preapproved for Financing
Dealerships generate revenue at every stage of the car purchase process, including financing. You don’t have to accept the financing a dealership offers, and it often pays to shop around for rates before visiting a dealership, as that provides bargaining power.
“Dealers often focus on selling the payment, not the rate. By securing a loan offer from your bank or credit union first, you set a baseline for negotiations and reduce the chance of being upsold on financing,” the AI explained.
Even a 1% difference in interest rate can result in substantial savings.
Consider a US-Built Car
Tariffs are a new reality Americans are facing with auto purchases. Automakers were still eating the bulk of added costs, NPR reported in mid-2025, but that may not last. In fact, J.P. Morgan estimated a 3% increase in new vehicle price inflation as consumers and manufacturers share the tariff burden.
Buying American may offer savings opportunities. “Vehicles assembled domestically often have lower shipping and import costs, which can help keep sticker prices and parts replacement costs down,” ChatGPT said.
Additionally, a new tax credit is available to qualifying buyers to deduct up to $10,000 in interest paid, according to the IRS; however, this credit expires at the end of 2028. This isn’t reason enough to rush to buy a car, but it can be a nice perk if you must purchase a new car.
Factor In Ongoing Costs Before You Buy
It’s understandable to assume that a car’s price is the only factor to consider. The sticker price is just the beginning. Overlooking after-purchase costs can lead to budget problems if due diligence is ignored before purchase.
“Insurance premiums, gas mileage, repair history and parts availability can vary dramatically between models … Before committing, get insurance quotes and research maintenance costs so you know the real long-term impact on your budget,” the AI explained.
It’s best to have this information in hand before visiting a dealership so you can make more informed choices.
Shop Across Multiple Dealers and Platforms
Using the internet can be a helpful resource when buying a car. Dealerships don’t have to compete only with a competitor down the road; they must consider dealers in other locations.
“Expanding your search radius, even by 100 miles, can uncover major savings, especially if certain areas have more inventory,” ChatGPT said. Share that information when on a dealer’s lot. “Don’t hesitate to share competing quotes; dealers often match or beat them to earn your business,” the AI added.
Buying a new car is undoubtedly expensive. By following a few simple tactics, you can save money without overextending your budget.
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