It is more than okay to be skeptical when going to buy a car, it is true that everything you have heard about dealers and their tricks is true, for the simple reason that it is their work and they earn money through this trade. However what you can do from your side is to keep knowledge of how things really work, this would help you negotiate a better deal for yourselves in the future. This is an article aimed at making you aware of how things work and what all you can do to make sure that you get the best deal for yourself.
Buying cars whether new or old is no longer a hassle than it used to be, partly thanks to the tools that are available as a free resource to you online. It is for sure that you should take a view of the situation and research beforehand when approaching a dealer because it would equip you with awareness as well as give you confidence while negotiating. It is recommended that you go through the following steps before going any further in this article and before approaching the dealer.
- You should first use a car finder application/website like Auto Sales Classifieds and Used Cars for Sale to figure out some cars that would meet your specific requirements.
- Secondly, you should compare the cars you shortlisted.
- Check out some listings on sites like Auto Sales Classifieds to shortlist some likely candidates to talk to.
Once you’ve shortlisted your cars, the real work begins because you now have to negotiate with the auto dealers, now let us look at some do’s and don’ts when negotiating.
You should under no circumstances start the negotiations with the point of monthly payment, you should always be looking to buy the car at full price upfront because negotiating about monthly payments creates confusion of how many months and how much interest you would be paying and this gives the dealer the opportunity to confuse you and trick you into paying much more for your vehicle.
According to some employees at certain dealerships who didn’t want to be named “ Dealers are always looking to get you into the trap of monthly payments and take large backend profits out of it, resulting in you paying much more for the vehicle than required.”
They might say that you can get a vehicle at as less than $400 a month but they won’t mention the number of months you will keep paying for it. If they get you into a longer system of payments then its only natural that they are making exorbitant amounts of money through interest.
According to the industry workers, it is not at all wise to mention your intent of trading in your pre-owned vehicle because dealerships like to move money around and while they may be ready to give the right amount for your vehicle, it will almost always result in you paying the full MSRP of the vehicle one way or the other because they’ll inflate the rates and won’t budge.
It is always wiser to mention trade-in later and even if the topic comes you can just say “Yes, I want to trade in, but let us talk about that after we’ve decided upon the price of the car”. Either way, the best option even according to the dealership employees is to sell you vehicles beforehand through websites because that ensures you get the full and just rate for your old vehicle as you can always calculate the value of your car with Used Car Valuation Tool.
The Dealer will always try to confuse you lots and lots of numbers to get his way with you but it is important to remember that the new car’s price is actually in question. Even if he tries to rope in the negotiations of the old car, just tell him that you would rather talk about that later, the key is not to lose focus or you’ll end up losing money.
While it is true that in no way possible you should tell the dealer how desperate you are for a car because naturally, that’d bring out the predator in him, but it also necessary to inform him that you are planning to buy your car in a few days’ time because otherwise, he might come to think that you are just fiddling around and let us face it, in the end, they are also earning their living and they’ll show interest only if they see you doing so.
Although despite this you should be careful because the dealers will always try to confuse you and make way for trying for you to finance their purchase through them.
It is advised that in order to get the best price, you should have done your homework beforehand; just play around with the Auto Sales Classified’s Payment calculator to get an idea about what you’ll be paying for the certain price of the car you want.
Also, you can research about monthly payments on Auto Sales Classified’s Payment Calculator plus research about incentives on the incentives pages.
Another great step you can take is, step inside your warzone (the dealership) fully equipped by getting yourself pre-approved for a loan, this way the dealer won’t be able to quote a high-interest rate which they always do without even knowing your credit rating.
Never mention it upfront to the dealer that you intend on paying with cash because dealers always look to make most of their money on the back end through financing and if you tell them that you intend to buy your car upfront, it might create problems on the negotiations end as they might refuse to budge because they know that you won’t be financing and would want the maximum out of the transaction.
One way to get the best interest rate from the dealer when you are looking to finance through a dealer is by mentioning a show of interest in the beginning and then backing away from it because that would prompt the dealer to lower down the price and interest rate in hopes of making some money through financing.
Another way to get the things done right for you is mentioning that you’ve been to other dealers of the same brand because what fundamentally differentiates two dealers of the same brand is the price they offer and the way they treat the customer and both of these could become better only if you mention that you have been to their competitors too.
Lastly, it is sometimes all right to pay a few hundred bucks more because that ensures better services to you in the future when you come for servicing and repair of your car those bucks are bound to come in handy at that time.
These were some guidelines that one should keep in mind while going to buy a car, we are sure that you’ll get yourself a good deal if you negotiate properly while keeping all these points in mind while playing mind games with the dealer.