- - Buying a Car? Here’s How To Tell Instantly if You’re Paying Too Much

Laura BogartJanuary 22, 2026 at 12:15 AM

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DuxX / Getty Images/iStockphoto

Buying a new car can feel like taking a bumpy road. Between test drives and paperwork — not to mention the not-so-subtle pressure from a sales rep — it’s hard to know whether you’re paying too much. And the worst time to realize your wallet has also been taken for a ride is after you’re already home, keys in hand.

If only you could determine whether you’re overpaying right away. That’s possible, according to Zach Shefska, president and CEO of CarEdge, an AI-driven platform that streamlines the process of finding, pricing and negotiating a car purchase. With careful research and preparation, he says you can spot a bad price almost immediately.

He shared savvy tips for putting your car-buying skills — and intuition — into the fast lane.

The Market Conditions Aren’t Favorable

Knowing whether you’re getting a good deal — or being taken for a ride — starts with understanding the market.

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Because market conditions dictate price and negotiability, high demand and low supply for a particular model can limit your ability to negotiate. If you’re facing the opposite scenario, however, you could drive off with a much better deal.

“So how can someone tell instantly? They need to understand the market conditions first, and then answering the ‘Is this a good deal?’ question becomes easier,” Shefska said. “We obviously recommend our research resources on CarEdge.com, but there are plenty of other options out there, too.”

The Car Has Been on the Market Too Long for the Price

When shopping for your next car, Shefska suggests assessing two key metrics: days on the market and market days supply. Both can be strong indicators of whether a price is negotiable.

Days on the market refers to how long a specific vehicle has been sitting at a dealership. The longer it’s been listed, the easier it may be to negotiate a lower price.

Market days supply (MDS) — an industry measure of how long it would take to sell all available inventory at current sales rates — can offer additional context.

“The industry wants market days supply to be about 60 days, meaning it would take dealers roughly 60 days to sell out of inventory at current sales rates,” he said. “When MDS goes above 60, the shopper has more leverage because the dealer is oversupplied.”

Shefska acknowledges these terms can feel complex — even “jargony” — but says understanding them gives consumers real car-buying horsepower.

The Deal Isn’t Rooted in the Out-the-Door Price

While many shoppers focus on monthly payments, Shefska says negotiating based on that number doesn’t benefit buyers in the long run.

“Loan term length and APR can greatly influence the monthly payment without yielding a better selling price,” he said. “If your payment goal is $500, a dealer can get you there — you just might end up with a 10-year loan. That’s the issue with payment shopping.”

Instead, shoppers should always focus on the out-the-door price — the total cost of the vehicle, including dealer fees, add-ons and taxes. Shefska describes it as the price you’d pay if you wrote a check that day. If a dealer repeatedly steers the conversation toward monthly payments, Shefska recommends redirecting it back to the out-the-door figure.

There Are Too Many Add-Ons

For many shoppers, no dealership visit is complete without an upsell attempt. Shefska advises reviewing contracts carefully and asking questions about unfamiliar charges. Watch for inconsistencies between what’s listed in the contract and what was discussed during negotiations or advertised online.

The CarEdge website highlights common add-ons that can spike prices without providing meaningful value:

Vehicle prep fee

Dealer prep for delivery fee

Pre-delivery service fee

Pre-delivery inspection fee

Reconditioning fee

Additional destination fee

Cash upcharge

He also encourages shoppers to push back on add-ons such as nitrogen tire fills, VIN etching and LoJack, which are typically high-margin items for dealers but offer little real benefit to most buyers.

Follow Three Steps To Get the Best Price Possible

In addition to spotting signs you may be overpaying, Shefska shared three ways to secure the best possible deal:

Get preapproved for financing: “Do not rely solely on the dealer for a car loan. Dealers make a lot of money by marking up interest rates,” he said. “Avoid that by securing your own preapproval.”

Know your trade-in value: Research it before visiting the dealership “so you have leverage if they lowball you.”

Do market research: Understanding pricing, inventory levels and comparable vehicles in your area puts you in a stronger negotiating position.

These steps require time and effort, but they’re essential for negotiating with clarity and confidence.

The Bottom Line

Determining whether you’re overpaying for a car isn’t as simple as turning a key in the ignition. But the warning signs are often there if you know what to look for. Do your research, focus on the out-the-door price and don’t get talked into unnecessary add-ons, so you can quickly tell whether an offer is fair — before you sign on the dotted line.

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This article originally appeared on GOBankingRates.com: Buying a Car? Here’s How To Tell Instantly if You’re Paying Too Much

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Source: “AOL Money”