Car buying is a headache. There are so many factors to consider when buying, and it can get confusing quickly. The stereotypes haunt me, as I imagine a creepy preowned salesman breathing down my neck when imagining car buying. But perhaps the questions haunt me more – Do you just go to the car dealership and ask for what you want? Do you lease or purchase a car? What does APR mean? Residual value? Do you go through a broker who may or may not have your best interests in mind? While there are multiple ways to go about buying, negotiating is a different story. Read now to learn 6 tactics to getting the best price on your next car.
6. Think of Your Budget – then Go Lower
When you first walk in, the sales person will ask your budget. Avoid this question, and stay vague. If you give them a price, they will either try to pigeonhole you or switch you to a lower vehicle.
One of the best tactics is to tell them something like:
- “I’m looking for the lowest price you can give me.”
- “Tell me your prices first, and I’ll let you know if it fits my budget.”
If you must say a dollar amount, go low. Find an ad and tell them a number that’s 20% below that.
5. Stay Away From Features You Don’t Need
Know what options are important to you before going to the dealership. The extra features are usually what make a car more expensive, and it’s usually where the sales person ends up making their commission. The extra features sound nice, but usually are unnecessary and underutilized. There are usually bigger discounts on basic models, as these vehicles are usually created in excess.
4. Forgo the Additional Warranties
Almost all new vehicles come with adequate warranty programs. All dealerships have their own maintenance programs with additional warranties that are vague and undiscernable. The range is from $500 to $5000 and it’s difficult to understand what is included. If the car is new, odds are you will never tap into that warranty. I suggest sticking to the original warranty and saving your cash for gas and car washes!
3. Ask to Speak to the Manager
The sales person is essentially a middleman between the manager and the customer. If you are looking to do serious negotiating, skip the sales person and ask to speak directly to the manager. Say something like: “I have money for a down payment today and would like to walk out with a car, may I please speak to a manager?” To look extra serious, take out your checkbook or put your credit card on the table. Dealing with a manager will give you access to deeper discounts and deals, and can create a valuable contact for future car purchases.
2. Before You Go to The Dealership, Do Your Research
Knowledge is power. Know exactly the car you want, and the details of the car – the gas mileage, the engine, the prices, the colors. The more you know, the more credible you look to the sales person or manager. Many sales people and even managers are new, due to the dynamic of the business, and you can end up knowing more about the vehicle than the employee. This will truly allow you to get the best deal.
1. Be Confident
All the negotiation tips in the world can’t take the place of solid confidence. Car salespeople are highly trained in selling and making the most profit out of vulnerable customers. As long as you stand your ground and are firm with your price and budget, you are on your way to getting the car of your dreams at the price of your dreams,