Purchasing a new car can be a major investment, and that is why you want to be absolutely sure you are getting a great vehicle at the right price. Before heading to the dealership, you will need to do a little bit of research so that you are in the best possible position for the negotiations. Here are a handful of tips that you can use to get a good deal on the car of your dreams.
Go at the Right Time
Many companies offer incentives to their employees at certain times of the month or year in order to get rid of their existing stock. If you aren’t in a rush, then you might be able to save quite a bit of money by waiting until the new models are about to be released. This tactic doesn’t work at all dealerships, but some companies will sell vehicles at a loss so that they have room for the newer models. At the very least, you might be able to get them to throw in other bonuses such as free oil changes or car washes.
Boost Your Credit
When shopping for a car, one of the most effective ways to save yourself some money is to boost your credit score by a few points. According to federal regulations, everyone is allowed to check their credit report once every 12 months for free. While you are checking your credit report, you should be looking for any red flags that salesman might bring up such as loan delinquencies or missed payments. With extremely good credit, the salesman might even offer you a good deal on the spot as long as you go through their private financing company.
Research the Cars You Are Interested in
Test driving is an important part of this process, but you need to do some research well before you head to the car dealership. And never buy a vehicle immediately after a test drive. Just the act of driving it makes you feel more attached to a vehicle. Wait a day or two to give yourself an opportunity to come to your senses. Knowing the value of the car that you are interested in will give you a good baseline to work with once it comes time to start negotiating the final price. Even if you don’t actually buy the vehicle for that price, you will at least have a ballpark figure before you get there. Many different companies have online directories that give relatively accurate estimates for new and used cars.
Talk to Your Banker Beforehand
Some of the largest dealerships have their own financing departments, but you might be able to get better rates through your current bank. Before going to the lot, you first need to head to your local branch and speak with a loan agent about all of your options. Those who are approved for a loan beforehand will be in a much better position to negotiate a decent price. For the dealership, a third-party loan is essentially cash, and that means they should be able to offer a wide variety of bonuses and discounts.
Don’t Just Think About the Monthly Payments
One common mistake that many car buyers make is forgetting about all of the other expenses of owning a vehicle. When you walk into the dealership, you need to know exactly how much you can spend on every facet of the car. You might be able to afford the payments on your dream car, but the maintenance costs could be astronomical. In addition to the monthly payments, you will also need to think about oil changes, warranties, and your monthly insurance premiums. You can even bring those expenses up during the negotiations to see if that information has an impact on the dealer’s offer.
No matter what type of car you are hoping to buy, knowledge is going to be your strongest asset when it comes time to haggle. Those who spend more time researching every aspect of this process will be in the best position to negotiate down to a fair price.
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