Question Asked: How Can I Save Money Buying A New Car?
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Jan 20th, 2009 |
Buying a new car is a big decision, and one that you should definitely do your homework on, before buying. The most important thing you should know is exactly what you want to buy, before you get to the dealer. Take advantage of the internet, use it to research the car you want, and the prices that dealers are offering, as well as current manufacturer deals that are going on.
A dealer’s goal is to get you to pay as much money as they can for your new car.
Your goal is the exact opposite.
You need to do a “dance” of sorts to get your good deal.
If you know the exact car you want (model, year, make, features, trim package, etc), you should know the exact price you’re expected to pay. If the sticker price is higher than that, point it out to your salesman, in a friendly way. Ie;
That seems a bit high. I saw the same car, in the same trim at another dealer for $XX less.
Dealers know they’re being tricky, and once you point out their higher price, will most likely work with you to get the car down to a price you want. Assuming that price is reasonable.
Your biggest weapon when negotiating terms is simple; if you’re not happy, get up and walk away. In these tough economic times, they want to sell you a new car worse than you want to buy one. If they get the feeling you’re not going to buy, they’re going to do whatever they can to change your mind.
Keep in mind, it’s not only money that’s an important factor, but also the interest rate. If the car is slightly more expensive than you wanted to pay, but they’re willing to give you an extremely low interest rate, the car might end up being cheaper than you thought it would be.
The difference between a 5% interest rate, and a 0% interest rate, over 5 years, on a $40,000 car is roughly $11,000.
If the dealer is willing to finance you at 0%, you just saved 11 thousand dollars over the next five years. While you may pay more for the base price of the car, would it be $11k more? Keep that in mind.
When dealing with a car salesman, just remember – they’re just doing their job. You may hate talking to them, and think they’re all scum, but they’re just trying to earn a paycheck. Be courteous to the salesman, treat him/her with respect, and they’ll do the same. The “deal” you may get won’t be directly from that person, but their boss. So if you’re good to them, they’ll be good to their boss, and it should work out in your favor.
Hope that answers your question, and good luck with your new car!
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