- Do Your Research
Just like you would research any other large purchase item, you should do your research about the car you want and if it’s a good fit for you. There are a ton of websites that offer comparisons for the best price of a car.
- Master Negotiating
Depending on the amount of research the better new car deals that you can get and the more you have when you get to the dealership. Taking a friend with you will be beneficial with you too because you can use them as a way to step away from the negotiation or if you need to step away and think about the numbers or clear your head for a second. When negotiating, you have to be able to walk away and wait for the dealership to call you back or offer you a better deal while you’re about to walk out.
- Have Your Own Financing
A way that the dealers can make your money is by offering you financing but don’t do this. Earlier, they will tell you that you’re saving money by financing through the dealership but what they don’t tell you is that they will give you the best rate but mark it up by 4% which is called dealer reserve. The dealer will pocket the additional markup money and only provide a little amount to the financiers.
You must also avoid getting a pre-financed loan from your bank or credit union so that you when you go you will already have your pre-approval letter on hand with you.
Instead, nowadays the new car deals comprise of better financing offers as per your needs & availability. Check out the deals before purchasing your car.
- Don’t Be Afraid To Walk Away
During the negotiation process if it’s not going your way, then don’t be afraid to walk away. The dealer requires you more than you need them because you can go to another dealership and try to get a better deal. You must take benefit of this fact by driving a hard bargain and if it isn’t going well, then walk away.
If you do leave, then you can go back the next day and usually the dealer will want to give you the deal in order to be seen as a good salesperson.
- No Add-Ons
So you outsmarted the dealer with your great negotiating skills to get a good deal but watch out because they will try to make up for the money they lost by trying to offer you useless add-ons. The dealer will try to offer you bad add-ons such as rustproofing or a worthless warranty. An example would be, they try to offer you a fabric protectant package that adds $12 to each of your payments.
This might not sound like a lot but over 72 months that would total out to be $864. That is a complete rip-off, so make sure that you avoid all add-ons no matter how good that they tell you it is.
- Think About Shopping Online
Many of the staff on online dealerships are paid regular salaries versus commissions like dealers at a physical dealership. The prices on online stores are rather low compared to the standard ships, and it is pretty easy to see the comparisons and even negotiate on the price.
Automobile websites have become rather popular because of their tremendous and friendly perks such as a 7-day test drive, free delivery, and even a return guarantee. The types of results vary, but you can at least compare your prices online and go to the dealership with a starting price.