How to get a great deal on a new car
Buying a new car always require many visits to the dealership, lots of hours spent on research, lot of nerves, and of course requires a lot of patience! But it not really necessary to be like this. Here are a few steps to follow that will spare you for all that trouble and help you get a great deal for your new car.
The first thing to know is when is the perfect time to go to the dealership and what to do when you get there. So, the perfect day to go is a Saturday morning, just a hour before launch time? Why? Lots of people in there and you can do your research without having a sales person bugging you every minute. When you get in there take a look at the cars and write the model numbers down. The numbers are generally on stickers inside the front glass. After that request a test drive, drive the cars on both in the city and on the highway. At this point say is launch time and you haven’t eat yet and leave. When you get home and start making your price research. One more think, if you’ll finance don’t do it in the moment of the purchase. More about the first steps at the dealership can be found in here.
The next step is deciding how much you can afford, setting a cap on how much you will pay, and obtaining competitor price information. There are two limits you need to set when buying a new car: 1) How much profit you’re willing to allow the dealership to make and 2) How much you can afford. A $500 profit for the dealer is more than reasonable! A very big problem is negotiating the monthly payment. First you will need a simple spreadsheet that allows you to quickly recalculate numbers. Then print out a sheet that contains payments for different dollar amounts and interest rates below the finance deal you’ve already received. So, say you have a finance deal for 7%, bring different dollar amounts for rates from 5% - 7%. Basically a cheat sheet for you to use to validate their numbers. Before you head over to the dealership to strike the deal, call various competitor dealerships in your area. Tell them you are ready to purchase a car, have your financing secured, and that you would like to know their bottom line price for the vehicle you are interested in. Tell them you will use this information to decide on what dealership you will visit first. Of course, won’t be pleasant, as dealership don’t like this, but be persistent and you will find out the informations you need. More about the second step here.
Last steps to learn: how to deal with the sales staff, finance team and drive your new car home. After so many researches, time has come to actually go and buy the car. This time go late on a week night. The least number of auto sales happen during the weekdays, the dealership is going to be more hungry for a sale. Once you get in there ask for a sales person, gave him the stock number you previously wrote down. Be clear that you are ready to buy and drive it home tonight as you won’t be available to return back for a few days after today. One you get into the box, remember you are there to buy and not to make a best friend! Set the tone and make your first offer. start at $1000.00 to $1500.00 below invoice. Do not factor in any rebates or cash down at this point. We’re talking pure price of the vehicle. Cash down and rebates come off the negotiated price. Pay attention to this point, because the sales team likes to throw all of this in and confuse you with numbers. There price worksheets are designed to confuse you. Of course the sames person will be in shock and will tell you is impossible. Tell them they have 10 minutes to decide or you will leave. They will walk out of the box; if they don’t came back in 10 minutes walk out. out. They won’t let you and it will further put you in control of the deal. After dealing for a while, if you get into the point where the dealership is telling you they can’t give it to you for your offer it’s time to make a tough call. You can believe them and make a deal for that price. By this time, you’ve got a really good deal. The other choice is to say thansk and walk away. After you make the deal, you’ll now be sent over to the finance office. Buyers generally think the negotiation process is over at this point. Wrong. Dealerships make money with financing as well. But by getting our financing in advance, we made this part easy. Tell the finance person that you already have financing, but if they can beat it, you’ll go with them. Generally they can and will beat it. But even if they can’t, you’re good as you already have it taken care of. This is a win/win situation for you. After lots of paperworks and signatures is time to take your car and go home. More about the stepts to follow when dealing for a new car in here.
Source: Gather Little by Little