A new car purchase is exciting, but can also be intimidating, especially with regards to the negotiation of price. The sticker price is often a partial cost. If you use the right strategies, you can better deal with your ideal car is possible. In this article, you’ll learn some proven methods to help you get the best deal on new car pricing.
1. Do Your Homework
Before visiting a car dealership, you should extensively research your desired vehicle. Start by learning about the features, specs, and pricing of the model, make, and year you seek. Read reviews online and compare the prices of different dealerships. Knowing the market price of the car and the invoice price paid by the dealership to the manufacturer will help you negotiate.
2. Timing is Everything
Even though you may not realize it, the time, month, and day of the year you purchase a new car can make a big difference in the price. Dealerships may offer better discounts during certain periods, such as
- End of the month: Salespeople might be more motivated than usual to meet their targets, which could result in more favorable negotiations.
- End of the Model Year: As new models arrive, dealers are keen to clear older models, offering discounts.
- Holidays or promotional events: Dealerships often offer discounts and promotions to customers during specific holidays or events.
3. Get Pre-Approved For Financing
Be sure to have your car loan pre-approved at your local bank or credit union before you begin haggling. When you negotiate with a pre-approved car loan, you will have a more defined budget. Also, the dealer is prevented from manipulating the finance terms.
4. Avoid Rushing the Test Drive
Once you narrow down your list, you can schedule test drives for each vehicle you’re interested in. If you need to know whether a car will meet your expectations, pay close attention to how it feels, drives, and performs. You should take your test drive at your own pace and ask as many questions as possible. This is an excellent opportunity to build a rapport and gauge how the dealership will work with you.
5. Be Willing To Walk Away
The willingness to walk if a deal doesn’t meet your expectations is a powerful negotiation tool. Salespeople want to close deals and are motivated to do so. If you are about ready to walk away, the dealer might be more flexible in price or provide additional benefits to retain you.
6. Negotiate the Price and Not the Monthly Payments
Dealerships can mislead you by focusing on the monthly payment when negotiating. Negotiating a lower monthly payment may be tempting, but this could lead to higher interest rates or a longer repayment period. Instead, it would help if you negotiated the car’s total cost. Once you agree on the price of the car, you can discuss finance options.
7. Remember To Be Aware Of Extras, Add-Ons, and Other Charges
Dealerships sell additional add-ons to increase profits, including extended warranties, paint, or rustproofing. They can be expensive, although some may be well worth the money. Be selective, informed, and ready to negotiate the prices of any add-ons or decline them entirely.