Salesmen are more willing to haggle prices to close the deal when in the holiday season, as most people are too busy to think about buying a car at that time.
Another time that is the best for getting a good deal is the period from July to October. Dealerships are trying to get rid of their inventory to make way for the new year models.
Do some research online, and get some quotes optimally along with some good rebates or incentives. Print out your results from the lowest quotes and bring it with you to your local dealer. Showing them the lower quotes might compel them to give you a better deal. If not, shop around some more.
Visit FightingChance.com This site has great advice, as well as incentives and rebate offers. You may be able to save thousands of dollars on your car purchase.
A good tactic is to bring a copy of your credit score with you to the dealership. It can lower your interest rates on your car loan.
Be suspicious of any ‘bait and switch’ tactics, such as some odd change that occurred after you initially discussed the car with the dealer. Some unscrupulous dealers will use your preference for a particular car as leverage in convincing you to stay with your choice; although, unfortunately there has been some ‘unforseen’ change in the price or deal you originally discussed. Stick to your guns and remind them that is not what was agreed. If they don’t back down,or at least give you a concession, then it is up to you if you want to accept the difference.
A rule of thumb is to never wait until your car is broken down and you are desperate not only are you not thinking as clearly at a time like that, but the salesman may sense your desperation and take advantage of you. On such a major decision, try to force yourself to take action when you realize your car has issues, but while it is still running.
Do your research before going in and subjecting yourself to high-pressure tactics. Don’t fall for any deals where you are required to make an on the spot decision. This is a big commitment and you need to be on top of the game.
Tags: Bait And Switch, Car Buying Tips, Car Loan, Car Purchase, Concession, Credit Score, Desperation, Holiday Season, Incentives, Lemon Law, Leverage, New Year, Pressure Tactics, Rebates, Rule Of Thumb, Salesmen, Switch Tactics, Tactic, Thousands Of Dollars, Unscrupulous DealersRelated posts
Purchasing a new vehicle is a stressful chore for many people. Ask the average person what they dread most and they will tell you that price haggling is the worst aspect of negotiating a price. Few people come away from the deal believing that they got a fair shake; a significant minority will admit that they got ripped off if you press the issue with them. Besides shopping at a no haggle dealer Saturn, for example how can you avoid an unpleasant experience? Better put, can you? Lets take a look at some ways you can gain better control over the car buying experience so that you can save yourself some time, money, and a whole lot of aggravation.
Stay away from the hot sellers. Many Japanese brands are sold at full price and bargains are hard to come by. Still, if you do a little bit of research you should be able to shave several hundred dollars off of the sticker price or secure a very low loan rate should you choose to finance your vehicle. If your dealer doesnt want to deal with you, go to another Toyota, Honda, Nissan, etc. dealer to find a better deal.
Buy a left over. On the other hand, not all cars are hot sellers and many models do not sell out when the model year ends. If there is a particular car that you want, you should be able to realize significant savings off of the sticker price. Dont be wowed by an already reduced price touted by the dealership. Likely, they are getting a secret rebate from the manufacturer; learn what that rebate is and get as much of it as you can. Remember: you are already buying a car that is a year old. If it is a discontinued model or the latest version of that model is significantly changed, you have additional leverage.
Arrange your own financing. When purchasing a car, negotiate the lowest possible price before financing is discussed. If you come into the negotiation with your financing already covered, then you have additional leverage. If you are paying cash for the vehicle, demand an even greater discount.
Go in equipped. Consumer Reports will sell to you a print out of exactly how much a car should sell for. Purchase a report on the model you want to find out what the dealer likely paid for your car. The price you pay should be much closer to that amount than to the sticker price.
Buy through a car club. Car clubs, including those through warehouse clubs such as BJs, can be an alternative way to buying a car at a discounted rate without paying full price. Each club has their own way operating, but in all cases you should be able to pay less and leave the haggling out of the equation.
If you are the type of person who enjoys haggling, then your experience is not likely to be as bad. You know how to play the game and winning for you is simply securing the lowest possible price. For everyone else, a little outside help can save you money. Do not let your emotions tell you, I must have this car, or you are likely to pay much more than you should. Remember: dealer sob stories are just that; if they cant figure out a way to make money off of a sale, then they shouldnt be in business.
Tags: Average Person, Bargains, Car Buying Tips, Dread, Fair Shake, Haggle, Honda, Japanese Brands, Leverage, Little Bit, Loan Rate, Lowest Possible Price, Negotiation, Nissan, Purchasing A Car, Saturn, Sticker Price, Time Money, Unpleasant Experience, Whole LotRelated posts
What To Do Before Buying That New Car Or Truck
Ahhhh, that new car smell…
It’s great isn’t it? But it comes at a premium. We all know that it’s cheaper to buy used instead of new, but if you still don’t think you can live without that fragrance of a new car (the real one, not the one you buy from Wal-Mart in the little spray can) – then at least think about following these steps first:
1. Research! If you absolutely have to have a new car, do yourself a favor and spend some time at Edmunds.com and research some of the cars that you are thinking about buying. If you have a specific car in mind already, be sure to research the other cars in its class as well. You might even find another one you like better and is rated higher from consumers, has higher crash test scores, better resale value, higher mpg’s, or whatever else floats your boat.
2. Once you have decided on a car, Edmunds has a great feature for pricing – it’s called True Market Value. That is basically how much other people are paying for that specific car. This can give you great leverage when negotiating the price on your new vehicle. But you also must keep in mind that it’s not a definite price level, but more of a guide for haggling with the salesman about the price.
3. Dare I say the “L” word? Loan! There I said it, whew. Once you have settled on a fair price for the vehicle you are buying, it’s time to think about how you’re going to pay for it. Since most of us don’t pay cash for new cars, most likely you’ll need to obtain a loan for your new ride. If so, then you need to pay close attention to the interest rate on the loan. This is not something that can normally be negotiated, but you still need to be aware of what your interest rate will be – even 1 percentage point lower can save you over $700 on an average priced new vehicle, over the life of the loan.
My advice on this would be to go after those low APR loan offers that the dealerships sometimes have. You know, the “buy now and receive 2.9% apr for up to 60 months” type of offers. That can save you some big bucks, lets take a closer look…
How much money can lower interest save?
Ok, lets use an interest rate comparison loan calculator and plug in some numbers, and see what we get.
Example 1 – lets say it’s for a Chevy Impala:
Loan amount: $25,000
Regular interest rate: 6.9%
Special low interest rate: 3.9%
Loan length: 5 years
Total savings with lower rate: $2,073.94
That’s right, for this example the lower interest rate would save you more than $2k over the 5 year length of the loan. That money would be much better off sitting in an interest bearing bank account, don’t you think? Just for kicks, lets do a higher priced vehicle with the same comparison criteria…
Example 2 – Let’s say you want a Tahoe instead:
Loan amount: $45,000
Regular interest rate: 6.9%
Special low interest rate: 3.9%
Loan length: 5 years
Total savings with lower rate: $3,733.08
With example 2, you would save almost $4k in interest over the life of the loan. That would be a nice down payment on your next vehicle don’t you think?
There are many different things that factor in to what vehicle you actually end up purchasing – comfort, resale value, safety, style etc. Just make sure you add “research” and “interest rate” to that list, and stay informed!
Tags: Buying Car, Consumers, Crash Test, Definite Price, Edmunds, Fragrance, Interest Rate, L Word, Leverage, Low Apr Loan, Mpg, New Car, New Cars, Percentage Point, Resale Value, T Pay, Test Scores, True Market Value, True Value, Wal Mart