Buying a new car can be an exciting experience; however, you want to make sure that you get a good deal for the vehicle. Therefore, it is a good idea to negotiate with the seller, so you can obtain a lower price.
The dealer sets the price according to the invoice pricing. Before you choose a vehicle, it is a good idea to go online to check the Manufacturers Suggested Retail Price. Make sure you known the make, model and style of the car.
Other factors that will determine the price are advertised rebates, dealer incentives and the holdback, which are hidden rebates paid by the manufacturer straight to the dealer. Before you go into the dealership, research the numbers to see how much negotiating power you possess.
Car dealers will use all types of different approaches to get you to buy a new vehicle. They want you to make a commitment to buy before you leave the dealership. They also are under a great deal of stress to get the cars off their lot, so they will get paid.
When you walk into the dealership, you need to have the attitude that you are ready to buy today if the price is right. If the price is not right, I will walk away. That frame of mind will put some pressure on them, and they are more likely to lower the price. If they are not willing to drop the price, tell them you are going to shop around at other dealerships. You need to be patient until you get the price that you are willing to pay.
In some cases, the salesperson will be difficult. They might think that you really want to own that car, and they are gambling on that fact. If they get the sense that you love everything about the vehicle, they might play hardball. An experienced salesperson will try to use your emotions to his advantage.
Before negotiating, test-drive the vehicle. After you return to the dealership, take your time. Instead of negotiating right away, walk around the facility, go to the restroom or even get a snack from the vending machine. You do not want to get out of the car and star negotiating.
In addition, try not to act too excited about the car. If the dealer is aware of the fact that you love the color, interior or the accessories of the vehicle, he will try to play on your emotions.
One of the things that make negotiating tricky is that you do not know the dealers Least Acceptable Settlement. However, it is easy to calculate that number. Therefore, you can walk into the dealership knowing how low to go on the negotiation.
It is even possible to begin negotiations from your home. You need to obtain email quotes on the car you would like to purchase. This will also alert the dealer that you are willing to do your homework before purchasing the car. Once you receive the email quotes, you can call the dealer who sent you the quotes. In some cases, they will call you; however, before you speak to them, make sure you are prepared. By talking to them by phone, you can establish yourself as a customer and verify the quote. You can then make an appointment to visit the dealership. It is not wise to tell one dealer what a quote from another dealer was.
Before you go to the dealership, make sure that you print out copies of invoice prices. You also need to determine how much you are willing to pay for the car. Do not pay more than what you can afford. If the dealer does not offer you the price that you want, be willing to walk away.
After you test-drive the vehicle, you are then ready to make your offer. While the dealer is thinking about your offer, be patient and wait for his response. In most cases, the dealer will tell you that your offer is too low, and they will counteroffer. You can then counteroffer his deal if you wish. When you counteroffer, make sure you raise the offer in small amounts of money. Once you have reached your limit, either they will agree to that price, or you tell them that you will do business elsewhere.
Before you go into the dealership, it might also be wise to be preapproved for a loan. If you walk in with the financing in order, the dealer knows that you are prepared to buy if the price is right. If the price is not right, you will go to another dealership.
You might think that negotiating is too much of a hassle; however, it will be worth it when you sign the paperwork for a great price. A lower price will mean lower monthly payments and a better interest rate, so negotiate the price and leave the dealership with your brand new car.