Buying a new car can be an exciting yet frustrating experience. Dealing with the car salesman can be exhausting when trying to negotiate the best deal for the new vehicle. By using these techniques, readers can ensure the best price is achieved.
Research the Car
Before going to the car dealership, research the cars well to discover safety ratings as well as invoice pricing for models of interest. Multiple websites feature car reviews including total cost of ownership, owner comments and any pros and cons for that particular model. Car shoppers should go to the dealership armed with the information about the automobile including print outs of invoice pricing for the base model and all options.
Get Pre Approved for a Loan
If special financing options are not available through the automobile manufacturer, consider getting pre approved for the loan before shopping for a car. Not only does this give a maximum price that can be used in negotiations, it can avoid the dealership taking advantage in financing options. If credit is excellent, consider special financing offers through the dealership such as zero percent financing. Before negotiating with the finance officer of the dealership, shoppers should become familiar with their credit rating to ensure a higher rate is not offered due to a supposed blemish on the credit report.
Do Not Reveal All Information
When negotiating the car price, it is best not to reveal if a trade is involved or the amount of the payoff. The dealer should be willing to give the best possible price on the car in question without having to know information about trades or down payments that may be available.
Car shoppers should not be shy in letting the salesman know that research has shown what the invoice pricing for the car is. It can also be advantageous to let the salesman know that the best price should be offered the first time to avoid any back and forth games between the salesman and the sales manager.
Negotiate the Price
A common tactic of sales people is to ask the customer how much of a payment can be afforded. This information should not be revealed to the salesman. The dealership can alter many options including the interest rate and length of the loan to achieve a certain payment.
Negotiation should be on the total price of the car. Particulars such as the monthly payment can be negotiated after the total price of the car has been agreed upon. Shoppers should be sure to ask for the total price of the car including all applicable tax, title and fees. Many dealers will add dealer prep fees as well as loan documentation fees. A smart shopper realizes all fees are negotiable.
Be Willing to Walk Away
A customer should fully expect the salesman to come back to the table the first time with a price that is very close to the sticker price of the car. By remaining firm and restating the invoice price, a better deal can often be reached. If the salesman is unwilling to budge on price, be willing to walk away from the dealership. The salesman knows that if the customer leaves the dealership, the possibility of a sale just greatly decreased as the customer now has the option to visit other dealerships.
All parts of the deal have room for negotiation including any extended warranties or extra options for the vehicle. While negotiating for a new automobile can be a tiring experience, being armed with research about the vehicle can result in the best deal and most value.
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