Everyone loves having a new car. But not everyone loves to buy a new car. The car buying experience can be uncomfortable and unsettling. There is always the nagging thought that you are not getting the best possible deal. If you’re looking to buy a car and have any of these concerns, here are four ways to get the best deal on a new car. See if some of them don’t turn the tables in your favor.
Know the current value of the car you want
This is the best way to get the best deal on a new car. If you know what the car’s true value is, you will be in a better position to negotiate. Too many car buyers trust the dealership to provide a fair price for the car they are buying. What they forget is that the dealer is interested in getting as much money as possible for the car. That is not consistent with what you should do as a buyer, which is to get the lowest possible price.
There are ways in which you can determine the fair value of a car even before talking to the dealer. Respected online sources, such as Kelly Blue Book or Edmunds.com, can help you focus on the fair market value of your car. (And don’t forget that your location matters, as car prices can vary from location to location.)
Before talking to a dealer, be sure to verify the value of the car you want to buy. You can go a step further by obtaining a hard copy of the valuation provided by one of the above websites. If the dealer is going in the wrong direction, you can use this to correct it.
Get a car loan quote from your own bank
Many times, the dealership can offer the best financing rates for a new car (and it is almost always more convenient and faster to obtain your financing from the dealership).
That said, when you trust the dealership for financing, you can never be completely sure of getting a good deal. Some dealers try to pressure you into getting a higher-rate loan, exaggerating the impact of certain negative credit information.
If you can get an approval letter for a car loan from a bank, before you go to the dealership, that will force the dealership to offer you a better deal than the bank. It will also ensure that you are not forced to get some kind of subprime auto loan. And for what it’s worth, it will also allow you to present yourself as a sophisticated buyer that the dealer won’t be able to take advantage of.
If you are not willing to negotiate, find a friend who is
When you buy a car, you are making a deal. You should never try to convince yourself that the opposite is true. And whenever you are negotiating, it is extremely important to be an effective negotiator. If not, consider bringing in a friend or family member who is, and let that person handle this difficult part of the transaction.
Understand that a car dealership is a place full of professional negotiators. There are the salesperson, the sales manager, and the finance manager, all waiting in succession to have a part of the negotiations in the sale of a car. This does not make them bad boys or girls, it is simply their job to sell you a car and protect your business profits. But like other major purchases (real estate, for example), buying a car is a bargain and you don’t want to pay more than you owe.
Always be ready to change the deal
Car dealers are also experts when it comes to lobbying customers. They know how to create a sense of urgency in the client, convincing them that if they don’t make this deal tonight, they will never get another one like it. It’s all part of a sales hype, and unless you’re buying a truly unique car, it has no basis in reality.
With this in mind, you should never give in to the pressure. If you feel like you are being pressured to make a purchase, or if you are not comfortable with the price or some other aspect of the transaction, all you need to do is get up and walk away.
The dealer cannot complete the transaction without your cooperation. That makes you the final authority on the deal, no matter what the dealer tries to make you think.
