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Buying New Cars: Dealers
When shopping for new cars, dealers are still the most popular choice for most consumers. While many people are now choosing to shop on the Internet versus visiting new car dealers, there are still many benefits to buying in the more traditional manner. The Internet can’t offer the shopping experience car dealerships provide with face-to-face service, test drives and the hand shake. So, here is a quick guide to make your next purchase at the dealer more affordable and hassle-free.
What You Will Need
- An Internet connected personal computer
- A little patience
Step 1 – Research Before You Visit the Dealer
Research pricing and rebates for vehicles that may interest you. Visit the Kelley Blue Book pricing guide and find out the MSRP and invoice price for vehicles that you are considering. Having this information with you, when you visit the dealer, will help you save money.
Step 2 – Finance Ahead of Time
Pre-arrange financing and don’t depend on the dealer. Even if you have less than perfect credit, you will probably find lower interest rate financing at a local bank or online. If you are a member of a credit union, apply with them first (credit unions have great deals on car loans).
Step 3 – Know How to Win at Negotiating
Use pricing information you find online to help negotiate a better deal with the dealer. Don’t be afraid to walk away without buying a car, and never spend too much time with the salesperson. The longer you stay, the more likely you are to accept a price that is too high.
Step 4 – Avoid the Extras
Decline add-on services or extended warranties offered by the dealers. If you need Scotchgard protection or an additional warranty, you will find much lower pricing through other vendors. Dealers make a lot of profit with these extras.
Step 5 – Remember Dealers Need Some Profit
Although you should try to get the best deal, remember the dealer needs to earn a profit to stay in business. Inform the salesperson you are willing to allow the dealership to earn a reasonable profit, but not too much.
