Buying A New Car-How To Get The Best Price
Buying a new car can be a difficult thing with the associated tasks of choosing a make, model, color, and trim level; getting that chosen cat for the best possible price can be an even more difficult task. Without the proper knowledge and skills you can be suckered into paying much more than you should have for that exact same vehicle. In order to get the new car that you are buying for the best possible price you must have 2 things: you must first have the knowledge of how car salesmen make their money, and then have the skills to reduce that amount to as small of a number as possible. This article is designed to add those two weapons to you arsenal so that you may drive that shiny, new car off of the lot with a big smile on your face after paying the lowest possible price for it.
Car salesmen make their commission from a car sale on a simple basis: percentage of profit. That simply means that they make a certain percentage of the total profit that the dealership makes on the sale of the car. This translates to a higher sale price meaning more commission on the sale; however, it is notable that a car salesman's main goal is to sell the car for nearly any amount above the "at cost price" so that he makes at least some profit...After all, a little profit is better than no profit. For instance, imagine that a brand new 2009 Honda Civic Si's "at cost price" is $26000, and the dealership lists the car at $33000. Lets also assume that the car salesman is entitled to 25% of the profit from the car sale. Even if the salesman sells the car for a mere $200 above the "at cost price", he will still make $50. Do you get the idea? Their priority goal is to sell the car at any price above the "at cost price".
Now that you know how they make their commission off of car sales, it is easier to understand the ways in which you can get the lowest price on the new car.
Haggle, Haggle, And Haggle Some More!
When you first take a seat at the bargaining table, they are going to offer you the car at the advertised price; glance at the number for a minute and tell them that it is a very nice car but you know that it is worth nowhere close to the price that you saw. You should be saying this because dealerships usually mark up the cars that they sell by a lot; furthermore, you are immediately letting them know that you are not going to be paying anywhere close to that amount! You will have to haggle for a long time and decline numerous offers before receiving the lowest price. One thing to remember when haggling is to be assertive, firm, and clear about what you want.
Let Them Offer First
They might ask you "what are you willing to pay for the car?". Do not answer that question until you have received their lowest price. You are going to continually make them offer you a new price until they have offered you the exact same price about 3 times. Once they have done this, you can consider this as your base price to haggle lower. Imagine that you are planning on purchasing the same civic as listed above...you have made them continually lower the price from $33000 until they have offered you a price of $29500; you are now going to begin making offers based on a negotiable price of $29500 rather than $33000. Always make them offer you their best price before you can even consider saying an amount of your own.
Walk Away From Their Offer
This is the key skill to ensuring that they have offered you their best possible price. A good car salesman has been trained to never let a customer walk out of the door until they have been offered he absolute best price. Once you believe that he has offered you his best price, say "it is still too high, I am going to look elsewhere". At this point he will do one of two things: try to stop you by immediately lowering his last stated price, or let you go telling you that the price is virtually the lowest that you will get at any dealership. Leave the dealership anyways as a precaution; after all, they could be bluffing. If they haven't called you back in 4 business days, take the initiative to call them back and let them know that you have reconsidered the price and would like to arrange another meeting; you can now be assured that you have the best price for the car in front of you.
Ask For Additional Accessories
This is like squeezing the last few drops of juice out of that orange slice. You are going to request one or two additional accessories that you desire such as floor mats, cargo net, locking nuts, or a bug deflector. You will request these at no extra charge to you. They may or may not agree with this depending on how "best" their price for the car was. Do not be alarmed if they decline your offer for free accessories as it only means that you have literally received the absolute best price for the car.
In order to get the best price on the car that you are buying, you must first understand the way in which car salesmen make their money; once this understanding has been made, you will have no problem purchasing your car for the absolute best price that it can be bought for! With this knowledge and these skills I am absolutely sure that you will receive the best possible price for that car, and drive it off of the lot with a huge grin on your face.