Buying a car can be an intimidating experience. Here are a few ways you can get the best deal on a car and not feel that you’re on the losing end going into the negotiations.
Know What You Want
Don’t go to a dealership ready to buy until you know exactly what you want. It’s fine to test drive cars. In fact, test drive a bunch! That’s the best way to determine what type of car fits your needs and your budget. But don’t go with the idea that you just might buy a car after that test drive. That’s a good way to get caught up in the moment and be on the losing end of the deal.
Do Your Research
Whether you buy from a private owner or a car dealership, do your research before you buy. It sounds silly, but many people skip this all important step! It’s easy to get caught up in the excitement (or perhaps hassle) of buying a new or used car. But without knowing where you should go and what kind of deal you should shoot for, you are doing yourself and your bank account a great disservice.
Talk to your friends and family. What do they like or dislike about their vehicles? Once you determine what car you want, then start pricing it out. Online you can find the manufacturer’s price, as well as the retail. Look at your local weekend ads. Most of the dealerships show their current sales price. Use this as a guide only. And keep in mind the old adage, “if it sounds too good to be true, it probably is.” Many dealers place ads to entice the buyers onto the lot. But that terrific price may belong to a single vehicle that “just” left their lot.
Come Prepared
Bring a calculator, pencil and paper with you. Salespeople won’t want to crunch numbers for you if they know you won’t like what you see. Keep asking for that interest rate and they’ll probably just change the subject. Don’t rely on muddied numbers from someone who isn’t looking out for your best interest. Rely on yourself and your own abilities to figure the numbers game. And bring a friend or family member for moral support. They’ll be strong when you can’t, and help you figure out if you’re getting a good deal.
First Things First
Talk overall sales price first. With a private seller, you only have to determine the sales price. But at a dealership, the salesperson will try to win you over with talks of low monthly payments. Don’t be fooled! You need to pin down the overall sales price first. Once you have a sales price you like in writing, then you can move onto monthly payments. That way you can determine the duration of payments and the interest rate. If you talk monthly payments first, the salesperson may have you at that terrific $250 a month payment you wanted. What you aren’t told is that your interest rate is 10% and you’ll be paying for 7 years!
Lastly, you can whip out the trade-in vehicle. If you bring that into the negotiations too early, the dealership will give you a bum deal. What might sound good early on will only be backed into your own car loan. For example, you are given $6000 for your trade-in. But what you don’t know is that the price of the new car is bumped up by $4000 and spread over the length of your loan, so that you really only get $2000 for that trade-in. So, if you get everything else in writing first and then pull out the trade-in, you know exactly what you are getting for your old car. (Read about Buying a Car with Bad Credit)
Keep One Foot Out The Door
Always be ready to leave. Don’t ever feel pressured to buy. In fact, the moment you feel pressure, you should walk out. You may be surprised to find the salesperson racing after you. You shouldn’t be. They want to sell you a car just as much as you want to buy one. Don’t feel bad about leaving the lot altogether. If they have your contact information, you will most likely get a call within a day or two with a better offer on the table. Don’t jump on the offer, however, unless it’s to your liking.
Keep Your Emotions In Check
Whether you are dealing with a private seller or a large dealership, leave your emotions at home. You may love that shiny black car more than your best friend, but you don’t want anyone else to know that. You want to come across as cool and collected while you wheel and deal. Once the seller knows you are emotionally attached and will do just about anything to get that car, he knows he has you in his grasp. Remember, there are other cars out there. And it’s only a car. Really.
{ Comments on this entry are closed }