There are plenty of tips out there for how to make sure you choose the right car, but how do you ensure you get a good deal? Car purchases can sound like a scary financial burden, but with the right negotiating skills, you can get the car you want for an affordable price. Here are a few tips for negotiating your next car purchase.
The Power of Knowledge
Before you can negotiate a deal properly, you need to be well-versed in all things related to car sales. Use online resources to learn about every part of the car buying process. You should also know everything about your budget and the cars you're interested in, including cost, features, and financing. The more knowledge you have, the less likely you are to be tricked by a savvy salesman.
Leverage Your Options
Just because a local car dealership has the car you are interested in, that doesn’t mean you are confined to only shopping at that dealership. Shop around, even if it means traveling a bit. Other dealers may be willing to give you a better deal to beat out the competition, and you can leverage your options to further haggle down the price.
Don’t Negotiate Monthly Payments
The dealership will likely want to focus on negotiating monthly payments as a distraction tactic. Reducing monthly payments will simply make your monthly expenditure lower while adding years toward paying off the total cost. Negotiate prices based on the total cost of the vehicle if you want to save money.
Exclude Trade-In Value
Car dealers can easily low-ball your trade-in value or hike up the price of a new car to empty your pockets. Trade your vehicle in a separate transaction to get a fairer return and avoid paying a higher price on your new car.
Focus on the Price
Discussions of add-ons and financing options are intended to distract you from the total price you are paying. Ignore the fancy add-on offers and the plethora of financing options the salesperson intends to throw at you and keep the topic of the total cost at the forefront of the conversation.
Accumulating extensive market knowledge, leveraging your options, staying focused and negotiating the full price of the vehicle, and excluding trade-in offers in your negotiations are a few of the top tips for negotiating your next car purchase.
