New car prices can seem intimidating to consumers searching for the best deal. Using the following tips can not only save money but also provide great satisfaction in a job well done.
Tip #1: Use Independent Auto Websites
Consumers who have narrowed their search for a vehicle and are now in the stage of checking new car prices should visit independent auto websites to do the following:
Determine Average New Car Prices – For comparable vehicles, consumers can see what the average selling price is in their region. This forms the basis for a fair price to pay for that specific vehicle.
Request Quotes From Multiple Dealers – With the click of a mouse, consumers can send a request for a price quote on a specific vehicle (make, model, optioned the way the consumer wants) to multiple dealers.
Tip #2: Car Negotiating Is Critical
Car negotiating tips, employed properly, can save consumers hundreds, even thousands of dollars. Everyone wants a good deal on new car prices, but it does take negotiating to arrive at that fair selling price. Recognize that negotiating involves a back and forth process, but it doesn’t have to be contentious.
Use the fair price gleaned from independent auto websites, and the quotes obtained from multiple dealers. In some cases, the email reply may contain a request to come in and they’ll beat any deal. This gives consumers the name of the Internet manager – the person who can make the deal. Contact the Internet manager and indicate, “It all comes down to price. I’m getting other quotes. What’s your best price?” The Internet manager will come back with a price, and perhaps there’s negotiating via email until the selling price is close to or at what the consumer wants.
Armed with multiple quotes and fair selling price, visit dealerships to negotiate the best price. Car salesman tips: Be pleasant, never argumentative, and be firm. Never deal with a rude salesperson and be prepared to walk away. Consumers should be negotiating from a position of strength. They know the fair selling price and won’t pay MSRP. Dealers have a leeway of between $1,500 and $3,000 on a $20,000 car, so keep that in mind. Never talk monthly payments. Price is the main point for negotiations.
Tip #3: Car Leasing Tips
Consumers should know in advance if they’ll lease or finance. If leasing, use independent auto website calculators to determine how much of a down payment, lease amount, various interest rates, and other figures will be. Shop lease rates through banks, credit unions, special affiliation groups, even the car manufacturer’s own finance companies. Look for the best deals and calculate everything. Weigh and balance any manufacturer and/or regional rebates offered against low-rate financing.
Tip #4: Car Financing
Factor financing in new car prices. The best strategy is to finance the least amount for the least length of contract. Unless the vehicle has a 0.0 percent financing rate for 60 months, it’s best to work the numbers for a 36-month contract.
Note: Consumers can take advantage of a rebate or low-rate financing, but not both. Calculate the numbers. That $3,000 rebate with a 5.0 percent finance rate consumers arrange for on a 36-month contract may be better than a 3.9 percent low-rate finance instead of the rebate.
Get pre-approved for financing to simplify the car buying process.