better business
1. Take the time to make a purchase; continue your search when vendors are not on the lot. Try looking for a vehicle on a Sunday afternoon, a Saturday afternoon, or even a Sunday morning. This will give you time to discuss prices, discounts, and the type of vehicle you’d like to purchase without interruption. You have a clear thought process right now.
2. Know how much you are going to spend each month of your budget for your new vehicle. Will you be able to afford a $550 a month car note? This should already be calculated before talking to any seller. Stick to what you can afford and don’t become a vehicle you don’t want or can’t afford.
3. Be aware of price reduction information such as how long the vehicle has been on the lot; you can see this information by opening the door and looking inside the door panel. This will tell you when the vehicle arrived at the lot. The longer the vehicle stays, the more they want to get rid of it. This could be a beneficial tool for your negotiation process.
4. Look at the rebates carefully; you must get the good rebates as well as the dealer. For example: the original price of a car is $30,000. The MSRP = the manufacturing suggested retail price which is $27,500; this may be what the dealer paid for the car. Then there is a manufacturer rebate from the dealers that the dealer also receives that may not happen to you. This price can be for example $1,500.00. Now the price of the vehicle has dropped to $26,000. The dealer also receives a profit for moving a car fast (aggressive sales) in a particular time period. This could be anywhere from $500 to $1000 for them. You may not see this benefit either. Now you can negotiate the price of $25,000 or $25,500. There is also a dealer cost of $500 to $1000 to consider. Dealers don’t want you to know about this either. Therefore, the true price of the called dealer may be from $24,500 to $25,000.
5. At this price you can bid $24,500 to $25,500 on a $30,000 vehicle and you can pay $4,500 to $5,000 less on this vehicle if your credit is good and it can be more. Remember that they need to sell this car and you are in control, not them. Always remember that they need you the most, their income depends on it. So use all the analytical tools you have.
6. Negotiate the price of the car, not the monthly payment; you will see the difference and this will work for you in the long run.
7. Get at least 3 or more quotes from other dealers on the particular model of your choice. This will help you get closer to your price.
8. Calculate your payment and look for hidden prices or interest increases.
9. You don’t need the extra warranties for the paint job or other parts of your vehicle, most of them are already covered. You can protect yourself with extended warranties, but not all the nonsense the dealer talks about.
10. In most cases, you don’t have to make a down payment, even if your credit is marginal. The dealer still makes money from you depending on several variables encoded in the contract you sign, so be careful. So keep your cash in your pocket at all costs.
11. Try to buy your vehicle during the close of the fiscal year, usually around October, dealers are trying to get rid of old stock to buy new stock and you could benefit from this.
12. Finally, you can search www.CarInfo.com or other websites for more tips and information on how to buy and beat dealers at their own game.