One of the most frustrating purchases a consumer will ever make is a new car. Even though it’s not the most expensive thing ever, haggling with a vehicle salesman might be so annoying that you won’t want to do it again.
Go to the dealer with a strategy in mind to negotiate the best price after researching the vehicle you wish to purchase. Here are some suggestions we’ve discovered:
Look for incentives: Since January is usually a quiet month for auto sales, dealers often use promotions like cash back or 0% financing to increase sales. Recent January specials from GM, Chevrolet, and GMC included up to $5,000 in cash back and 0% financing on remaining 2011 models, according to the website realcartips.com.
Look around for a loan: As was already said, certain automakers will finance your vehicle with no interest. Despite the fact that the rates are frequently only favorable for specific models, they continue to profit through higher vehicle sales.
Usually, you’ll have to decide between the dealer’s low financing rate and the cash back refund. If you can find a low loan elsewhere, shopping around for loans will allow you to receive both.
Know your credit score and correct any problems in your credit report card before asking for a loan. Credit Sesame, credit unions, banks, and online auto lenders like Auto Credit Express are places to look for loans. Once you’ve located a competitive loan rate, see whether the dealer can match it.
Don’t visit a dealership; instead, watch this video to learn how to obtain the best deal on a new automobile from Bruce Bueno de Mesquita, author of “The Predictioneer’s Game.” He advises calling all of the dealerships for the automobile you’re interested in within a 50-mile radius—or whatever far you’re prepared to travel to buy it—instead of going to a showroom.
Inform them that you intend to purchase a particular vehicle, specify the features you desire on the vehicle, and announce your decision by today at 5 p.m. You inform them that you will go to the dealer with a check for the best price and request the lowest price they can provide you, which should include all taxes. If you have the money, buying a car outright without financing is a terrific option.
Negotiate each item separately because you probably won’t get much money for your automobile if you’re trading it in. Don’t allow the dealer to add the value of your trade-in to the cost of the new vehicle. It is unclear and may conceal the fact that they aren’t offering you much money in exchange for your trade-in.
The salesman gave me a price for my new automobile when I traded in my old one. I inquired about the price if I didn’t sell him my old car, and the answer was $100 less. My old car was sold on my own.
Don’t base your negotiations during the separate negotiations on the financing arrangement or the monthly installments. Instead of concentrating on how little they can pay each month, consider the full cost of the vehicle.
Time your purchase: Since auto salespeople are paid on commission, they will offer better deals in the final days of the month as they rush to achieve their sales quotas. Christmas has long since passed, but if you can wait until the end of the year, the period between Christmas and the New Year is a fantastic time to shop for a new automobile because few people do it then and dealers are trying to reach targets for the number of vehicles sold by the year’s end.
If you visit a car dealer and aren’t given the price you want, leave. You could spend the afternoon bargaining, but that’s boring, and it would be best to just leave if you want the salesman to promptly drop his price to match yours. It might be their last chance to convince you to buy since they know you won’t stay if you leave.