As with any transaction, negotiation is an important part of any car deal. If you play your cards right, you will often see that you will end up saving some money, no matter how small, on the offered price of your dream car. If you are going to a local dealership to look at cars, there are a number of tips that you should know so that you can achieve the best negotiating position.
Negotiating a great car deal is in your best interest because a successful negotiation will reduce the total cost of the car, reduce your monthly auto loan payment and even free up money that you can spend on extras like insurance. If you are in the market for a brand new or used car, here are some ways to help you to negotiate the best car deal.
Compare prices across dealerships
As with most buying processes, you need to find out everything you can about the car that you want to buy. This includes knowing how much it costs both wholesale and retail. Then check the reviews of the car. For most popular cars, you will find that there are many things you can leverage on to make a good deal. There are also many aggregating websites that will help you compare different car models easily.
Contact the sales manager
Most car dealerships have a sales manager who is the best position to offer the best deals. Call the dealerships that have the car that you like and speak to their sales manager. Letting the manager know that you are serious puts you in a good position to negotiate since you are closer to a sale than others just calling for an inquiry. Having a relationship with the sales manager makes it easier to negotiate closer to your desired price range.
There’s always more than one option
You must not just find one dealership and stick to it. Shop around for other dealerships and try to contact as many as possible even if they are far from your house. This means sometimes simply contacting the dealership online and leaving your details so that someone will contact you talk about the deal. If the car you want is not too well-known, you should try looking for a rural dealer for the best car deals. For common cars like a SUV, most urban dealerships have many options for you.
Look beyond the monthly payment
Don’t let salesmen get you fixated on the monthly payment for the car. This is a common way of getting you to lose sight of the actual cost of the car. You could think you are getting a good deal when you are only focusing on the monthly payment. It is one number that does not tell the whole story. In order to make the best car deal, look at the cost of the car including financing and extras. Use your phone’s calculator to multiply the monthly payment by the number of months and then try to factor in all the add-ons, fees and extra services that you are paying for in order to know the real cost of the car. If your auto loan is being stretched to six or eight years just to make your monthly payment small, then chances are you will be paying way more than you planned.
Know the car deal options available
Carmakers always have different deals that offer discounts, rebates and special incentives for both brand new and used cars. Negotiating a good car deal sometimes goes beyond getting the dealership to knock off a few hundred dollars off the sale price. Ask for cashback offers, discounts of insurance and other extra. Also speak to the dealership about the interest rates of the auto loan to find one that offers you the best value. In many cases, a dealership may be able to offer you a combination of both a cashback offer and a super-low interest rate on your auto financing loan.
Another thing to look out for is whether a lease option is available as these offer lower monthly payments in most cases. Also ask the dealership if their used cars are certified pre-owned. This makes it easier to secure financing and you get even better value for your money than other cars. Check with your financial institution also if they are offer special rates on auto loans. If you also belong to a special group like a veterans’ group or AAA or AARP, also check if there are deals available that you can take advantage of for your new car.
Get your financing approved early
You have a strong bargaining chip when you walk into a car dealership with your auto loan pre-approved by a bank, credit union or other lender. This shows the salesman that you are ready to buy a car immediately, so he is motivated to give you a great car deal and close the sale. It pays to start early and get an auto loan deal in place so that you can factor in the interest rate, length of loan and other penalties into the cost of the car when trying to make a deal.
Don’t be emotional about your car deal
Buy a car can be quite an emotional experience because you are invested in the car that you are considering buying. Also, the negotiation process can be quite difficult and at some point, you just want to give up and get it over with. Don’t forget that you are dealing with a seasoned salesperson so you must be ready to haggle for quite some time in order to get your desired purchase price. Contact us today for car finance in Vancouver.
The worst-case scenario when negotiating a car deal is being unable to reach an agreement. In that case, don’t be afraid to walk away but leave your contact information. Chances are they will magically be able to make the price concession and call you to come close your car deal at your preferred price.