Is it possible to outsmart the dealer when buying a new car? This might sound untenable, but you can beat the dealer at his own game and get better deals from him. Forget the notion that the dealer has been in the business for some time, you can get prepared before you head to the dealership with tactics that will leave the seller with no option but to lower the price. To help you get ahead of the dealer, here are new car buying tips that will come in handy if properly executed.
5 Tips to Keep You Ahead of the Dealer
1. Set the Financing Plan in Advance… Even before settling on a particular car, you need to start the process of comparing interest rates way in advance. Ensure that the loans are pre-approved while you are at it. Compare the rates from your local bank, credit unions, and other financial institutions. Lay more emphasis on the annual percentage rate and ensure the repayment period is as short as possible.
Contact the dealerships that sell the model you intend to buy, ask for the rates and compare the prices. Check the manufacturer’s website to see if the model has any special rates or special financing rates. When you have your loan pre-approved, the negotiations with the salesman become easier and faster, and you may even go for the dealer’s loan if it offers better terms.
2. Find Your Car’s Trade-in Value… A seasoned buyer will tell you that car buying tips don’t have anything to do with trade-in process are worth re-reading. Dealers use trade-in as a tactic to ensure you surrender your old car at a lesser value than its real value. The only way you can outsmart the dealer on this one is by having your car valued before you trade it in. Some of the factors that will determine the car’s trade-in value include, condition, trim level and mileage as well as your area.
Credit: www.automedia.com3. Have a Target Price… This is one of the most common tips for buying a new car. Before you even get to the negotiating table, make sure that you know how much the model you intend to buy goes for. If a seller gets the slightest hint that you don’t how much the car you want to buy goes for, you can be sure that he will try to sell it to you at the highest price possible.
However, when you have a set target price, you will have more negotiating power. Don’t forget that the dealer knows that he can still make some profit out of the set target price and will take it as a last resort.
4. Let the Dealers Compete for Your Business… One of the most effective tips for saving on new car and to get ahead of the salesman is to let them compete for your business. You can do this by only getting competitive quotes from different dealers. Make a couple of calls to several dealers, with the exact details of the model you want. The more quotes you get, the better it is. Once the seller knows you have been in contact with other dealers, you can be sure he will try to convince you to buy from him. As the dealers compete for your business, the resulting effect is that the price goes down as they try to outmaneuver each other. In fact, this is one of the ways on how to save money on a new car that you should fully exploit.
5. Know the Dealer… You need to know the dealer as one of the tips on buying a new car. This means that you should find out if they are licensed and if they are appointed to work on behalf of the manufacturer. While most dealers operate legally, the most stressing part is that their salespeople might want make up for the low price by ensuring you pay more in their other branches. Ensure that you know the dealer’s area of operation and if they trade using other names elsewhere.
Getting ahead of the dealer when buying a new car might be a daunting task. However, these tips for buying a car ensure that you jump the hurdles and get a better deal. The only important thing to remember is that the dealer wants your business, so you should not act like you are the one in need. Well, you may need a car but ultimately you want it without being overcharged thus the reason for these new car buying tips.