image credit: Danny Choo
Buying a new car should not be just a simple transaction but in fact one should bargain on its price. Most of us bargain on petty things involving a few bucks, so why not negotiate when you’re buying a car in which you’ll invest your hard earned money. You just have to become an educated buyer rather than being just an ordinary buyer who comes in, selects, pays off the price and it’s yours. So, what do you have to do? Its simple, just follow these tried and true basic steps and save money on your expenditure.
Do your research!
Before you step into any dealership, decide what car you want to buy and the range of your investment. Internet is the best and the easiest way to shop and compare. Research the price of that car on various websites. If somewhere you get to know the dealer’s cost then you might be in a good position to negotiate. Also do some research for any car competing in same class. Knowing the prices and specifications will help you decide on the price factor. Have a flexible attitude; be prepared to look in to other options if it has more benefits. You can also do research on new and used cars online at CarCluster.com
Plan your time of visit
This is important for many reasons. When you walk into a dealership when there are already lots of customers, the chances of getting a good price are less, if you’re not buying, someone else will. Avoid going on weekends, visit them in a mid week instead when the rush is not that much and the salesman will attend you with interest and will be under pressure to close the deal. Going in month ends will also benefit you as dealers and sales team are under pressure to meet targets and may also negotiate to secure sales and reaching their numbers.
Show them the money
If you can, you should pay cash for your purchase rather than opting for some financing option. Financing does help, but what it actually does is, it takes out more money from your pocket eventually. We all know that financers and dealers have tie-ups and work for mutual benefit; so, both of them stand to gain from our deal. If you’re buying on cash you can set an exact price on a car eliminating administrative and processing costs. If you can’t afford to pay cash, have a prearranged financing option ready.
Stay away from additional expenses
It is advisable not to buy anything extra after you’ve settled the deal. The dealer may tempt you with various other benefits along with the car. Avoid paying for extras even if its alluring. You just need to pay the standard fees like sales tax, registration fees. Don’t go over the final price you’ve negotiated even though it will look very small in front of your large purchase amount.
Do remember, you can always walk away from the dealership if you think you won’t get value for money here. When you show signs of leaving, the dealer will try harder working out on a price that can be turned into a deal. Take your time and stand your ground confidently if you want to negotiate for a good price.
