Learn the best approach to not paying too much at the car dealership.
Buying a new car can be an exciting and stressful experience. On the one hand, you are investing in a new vehicle to better suit your needs, and on the other, you may anxious about paying too much at the car dealership. Like any business, automotive dealers are looking to make the most profit on any deal. However, with a little research and a few ground rules, you can get the car you want for a price that you can afford. Here are our recommendations for getting the best deal on your new car or truck.
Do Your Homework
Knowledge is power when it comes buying a new vehicle. Never go to a dealership without a clear idea of what you want and what you are willing to pay. Car buyers that have vague ideas of what they want will usually pay more in the end. Before you go to the dealership, cover your bases:
- Research the car and its features
- Determine which trim level and options you want, the cost, and an estimate of what the dealership paid for the vehicle.
- Calculate what you are willing to pay, including a fair profit for the dealer.
When you arrive at the dealership, Inform the salesperson that you are ready to purchase immediately if they agree to your target price, otherwise you will visit other dealers.
Visit the Dealership on a Weekday
The busiest times for dealerships are evenings and weekends. By going during the week, salespeople and management will be more available for a faster and more convenient car buying experience.
Negotiate the Sales Price
Offer minimal information and remember that this is a business transaction. Focus only on the actual price of the car - not trade-in values, financing options, or monthly payments. Once you determine the actual cost of the vehicle, then you can asses the value of any offered deals later.
Look Beyond Monthly Payments
While a lower monthly payment may seem like a good deal, if it is due to a longer loan periods, than you may actually be paying more over the long run for a depreciating vehicle. When negotiating, look at the overall cost instead of just how much you are paying each month.
While the car you recently test drove may be your dream car, if you can’t get it for a reasonable price, then you must be willing to let it go. If you stick to your bottom line on price and are willing to look elsewhere, you may find a vehicle that is even more suited to your needs. Additionally, the salesperson may willing to reduce the price once it becomes clear they may lose the sale to a competitor.
Discuss Trade-in Values, Discounts, and Other Incentives Individually
Salespeople can confuse buyers and create the illusion of a good deal by lumping rebates, incentives, and your vehicle’s trade-in value together. However, by negotiating each point separately, it will reduce confusion on your part and help you to see if you are really getting the best deal.
Are you ready to purchase a new vehicle and need an automotive loan at a competitive rate? First Reliance Bank offers loans with flexible repayment terms. Apply online, or contact one of our representatives today!