Now that you’re all set to buy a new car, what if you can buy it at a price lower than the dealer’s selling price? That’s right, that is possible. Car dealers are very smart; they have been selling cars for years. They have dealt with all kinds of people and know how to manipulate words to make a sale. If you’ve done your homework, you can avoid falling in their trap.
The first rule, which applies to buying anything, is to shop around. As far as cars are concerned, there might be only 1 or 2 dealers in your area selling the car you want. In this case, the best option is to browse online on websites like redbook.com.au, carpoint.com.au, drive.com.au, and carsales.com.au to get an estimate of the model you want with the desired features. You’ll also know if any rebates are being offered by the manufacturer for that particular model. This will help you negotiate better.
Next comes the hardest part, negotiation. Now that you have a price in mind, be firm. The dealer will tell you all sorts of things to discourage you like the price isn’t possible with this feature and stuff like that, but since you’ve done your homework, you should not fall into his trap. The minute you increase your bid, you’ll lose. This will motivate the dealer and he’ll have the advantage to sell the car at his price.
Most people finance a new car. Unless the dealer is offering 0% interest financing, it is better to get financing through your bank or a credit union. If you finance through a dealer, you will tell the dealer how much you prefer your monthly payment to be. Instead of lowering the car price, the dealer would increase the loan term like from 5 years to 6 years or from 3 years to 4 years, just to lower the monthly price. By doing this, you’ll end up paying more for the car. Unless you calculate the payments yourself before going to the dealer, you won’t understand what the dealer is calculating, which won’t help you at all.
Some people trade in their old car for a new car. The fact is that the dealer will buy it at price way lower than what it can be sold for. If you will be trading in your car, it is better to lock the price of the new car first, and then let the dealer know you’ll be trading in your car. This way the dealer won’t be able to manipulate the numbers to increase the car price.
The best time to go to the dealer is the last week of the month. If the negotiations don’t work, you can leave and follow up later. Chances are that if he hasn’t met the month’s sales goal, he’ll sell the car at your price. During weekday mornings when there are few shoppers at the dealership or during hailstorm or bad weather days are also good to visit the dealership. This will enable you to have more time with the dealer for negotiation.
Just by following the above tips can help you save money. The money saved can be used on car insurance or other add-ons later on. The dealer will make a profit at whatever price the car is sold, the only question is that are you interested in saving money or not?