When buying a new car, most individuals have the mentality that the dealer has all the necessary knowledge and techniques to sell you a car at a price they deem fit. While the dealer will never sell a car to you at a loss, there are a few tips on a buying a new car that you should know to ensure you buy it for the lowest price. It is about taking advantage of the loopholes and making them work for you. Below is a look at some of these tips and how to maximize on them.
6 Tips for Outsmarting the Dealer
1. Get a Cheaper Financing Plan… This particularly works when you want to opt for the dealer car financing option. The dealers will most of the time give you a funding plan that has a high interest. One way to beat the dealer on that is to get a funding plan from a different institution such as a bank or a credit union.
In most cases, the bank will finance your car loan at a lower interest rate. Head to the dealership with the plan and challenge them to give a lower rate than what the bank is offering. If the dealer can still make a profit, chances are that they will match the rate or lower it slightly.
2. Know the Average Price for the Car You Want to Buy… Most dealers will take advantage of your lack of idea on how the car you wish to buy retails on average. However, one of the car buying tips that will help you outsmart the dealer is by knowing the average price of the car. You can easily understand this by conducting market research on how much various dealers are selling the model you want to buy. Get real figures, that way you will know up to what price to push the dealer.
3. Buy at the End of the Month or Year… The best time to purchase a car is at the end of the month or the year when the dealers are most likely going to have offers on particular models. In addition at this time, there are many buyers and the sales people are eager to close as many sales hence tend to be flexible on the price a little bit. Also, dealers more so authorized dealers get extra bonuses at the end of the month from manufacturers giving you more reasons to buy at this time.
4. Buy Older Models… By far one of the tips for buying a new car is buying models that are 3 to 4 years old. Not many buyers can buy new models as they are released. However, you can get an earlier version of the car you want, and it will still feel as good. In most cases, the variation of car one model and its predecessor is very minimal hence the reason this remains as one of the most outstanding tips for saving on new car irrespective of the type.
5. Buy in Regions With the Highest Rebates… You may know about the existence of rebates and incentives as one of the tips for buying a car, but you may not know that the incentives differ from one region to the other. Sometimes the difference is too big to ignore. You will certainly have to deal will the hassle of driving from one dealer to the other but when the margin is big, you might as well take the trouble. It is important to mention that the rebates are targeted according to regions. Thus, you should keep yourself updated on the most current discounts in different areas.
6. Be on the Lookout for Loyalty Programs… There are manufacturers who reward customers who switch from another model. This is one of the best ways to drive the model you have always wanted to at a cheaper price. As a matter loyalty programs are one of the most sought after options for buying new cars at a price that is below the average market price.
There are more than one ways to outsmart a dealer if you broaden your scope of options. The most important thing to do is maximize each opportunity to the fullest. The new car buying tips provided here will show you exactly how to do it.